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Not only this, but with the near zero interest rates and perceived impending hyperinflation, people are taking out massive margin loans to bet on assets. Archeg
by tom-c 5y ago
Not only this, but with the near zero interest rates and perceived impending hyperinflation, people are taking out massive margin loans to bet on assets. Archegos isn’t the only one, they just happened to get caught with a dumb position. When the interest rates kick up, we’ll likely see a dual effect here(stocks react, high rates mean it’s harder to service debt for speculators and actual companies) and a 2008-like scenario except our bad bet is on stocks instead of mortgages