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I wish there were more details about how this resulted in bankruptcy. Was it an eventual lack of ability to pay for the interest on the loan he used to borrow t
by majormajor 6y ago
I wish there were more details about how this resulted in bankruptcy. Was it an eventual lack of ability to pay for the interest on the loan he used to borrow the stock, or did he fail to corner it, so other sellers ended up letting the shorters out of their position, and his shares plumetted?
- ihunter2839 6y agoWikipedia sums it up pretty well https://en.m.wikipedia.org/wiki/Clarence_Saunders_(grocer)#Wall_Street_raid https://en.m.wikipedia.org/wiki/Clarence_Saunders_(grocer)#W... tldr - the short sellers were given five days to find the necessary shares (compared to the standard 24 hours). That's a lot of time in 1923, and enough shares came in to get them out of the corner. Clarencr Saunders (the Piggly man himself) was left with no way to repay the loan that allowed him to set up the squeeze and was forced to walk away from a truly revolutionary business he had built. Read Business Adventures, as mentioned in other comments. Cannot recommend enough.