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Yeah, but in a sharp downturn you get margin called and possibly wiped out if you aren’t careful. A lot more rich people have lost everything from that sort of
by eigenvalue 7y ago
Yeah, but in a sharp downturn you get margin called and possibly wiped out if you aren’t careful. A lot more rich people have lost everything from that sort of problem than the number of rich people made even richer as a result of extreme inflation. And Weimar like inflation seems increasingly less of a near term risk considering that German 30 year yields just turned negative for the first time ever today.
- jjeaff 7y agoThese ultra high net worth people are getting loans at such low interest rates because the collateral is so much larger than the loan. If you have $10B in stock, you probably aren't going to borrow so much as to even get close to a margin call in a market downturn.