Zeev's Turnips Patch-No Politics (ZEEV)

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The NASD warned on Friday
that the tech dips were being bought on credit with margin
money and that margin credit was reaching dangerous levels.
According to the NASD there was $26 billion in margin debt
on Nasdaq stocks in July which is the most current month
reported. To put this in perspective there was only $21
billion in Nasdaq margin debt in March 2000 at the top of
the market. Stocks bought on margin are considered held
by weak hands as a sudden drop in the market can cause a
wave of forced liquidation that further accelerates the
drop. With Yahoo's market cap equal to General Motors there
is concern that bubble mania has returned. Volume in low
priced stocks has surged to more than the NYSE or Nasdaq.
Volume in bulletin board stocks surged to 41 billion last
month compared to 117 billion for all of 2000. This
represents extreme speculation and an increase in market
risk.