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To: Arrowhead1952

My response to MurryMoan

How many companies from the 90s 'boom' no longer exist. As someone who was very close to the road in investing in the 90s, I can tell you a large portion of the 'boom' was fueled by IPOs of companies with what we call 'infinite' PE ratios- these are companies created solely for the purpose of producing an IPO without having any book revenue. Many Internet companies and BioTech fell into this category. They had 0 earnings but had IPOs with valuations of billions of dollars based solely on 'potential' of their ideas.

Billions of dollars of phantom money traded hands during this time.

It is one of the reasons why the bubble began to burst in 99. One cannot continue to trade phantom dollars without it eventually leveling out.

And for the record, both the bubble and the popping had nothing to do with any single party or president. The Bubble nor the Burst can be attributed to Clinton just as it cannot be attributed to President Bush.. It was a financial anomaly of a completely new emerging market (Internet) along with new emerging customers of that market (the so called day traders and other Internet venues of trade.)


535 posted on 10/18/2006 11:32:26 AM PDT by mnehring (http://abaraxas.blogspot.com/)
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To: mnehrling

She won't listen.


539 posted on 10/18/2006 11:33:47 AM PDT by ChicagoConservative27
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To: mnehrling

Great reply. I noticed that on the DOW thread.


558 posted on 10/18/2006 11:39:43 AM PDT by Arrowhead1952 (Friends don't let friends vote for RATS.)
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