2 ms·
> People should be allowed to take risks Agreed. > There is nothing inherently wrong with being extremely leveraged, as long as you are prepared for the outco
by endisneigh 6y ago
> People should be allowed to take risks
Agreed.
> There is nothing inherently wrong with being extremely leveraged, as long as you are prepared for the outcome. This is why the common joe does not have access to such investments, but accredited investors do.
The downside of an overleveraged investment will affect the "common joe" - given that, what justification is there to allow hedge funds to do it? They receive all the upside, but not all of the downside.
- paxys 6y agoThe justification is that going from $50B to $5B isn't as bad as going from $50K to $5K. If people don't have money to eat or pay rent then it's a larger societal problem. Beyond that, you are on your own.
- deleted 6y ago[deleted]
- ALittleLight 6y agoI don't get it. You can go bankrupt without any leverage and definitely with 2:1. I could just put 100% of money in options and lose it all.
- dragonwriter 6y ago> You can go bankrupt without any leverage You have to borrow something to have a debt that cannot be repaid.