On 8/30/07, Jim Devine <[EMAIL PROTECTED]> wrote: > Doug Henwood wrote: > > It looks like the JSE index quadrupled in the year ending at that > > July peak. So if the 17% decline matters, doesn't the 300% increase > > matter almost twenty times more? Or does it only matter on the downside? > > it depends on how much leverage is used. An upward move of a stock > market helps the rich, yes, but down-shift hurts them > disproportionately if they bought a lot on margin. It can lead to > bankruptcies. > --
...and when their deriviative hedges are all margined as well? Crash... Burn. Leigh "Anyone claiming to understand today's world financial system is either delusional or dishonest." --Robert J. Samuelson, "Is the Boom in Peril?" (Washington Post, August 22)
