Re:What to Worry About in This Surreal Bull Market
by csomar on Tuesday November 28, 2017 @01:10PM
(#15799777)
If you give a guy $10.000, x10 leverage and a trading system; and we assume he has low emotion control and is bad at math. The result is that he'll burn these $10k getting margin called.
1. You can't get all people to play this game.
2. You can't get people margin called if the stock price doesn't drop enough.
You can get 1 if you complicate loans (Mortgage based securities); and you can get 2 if you make the issue related to the whole economy. So people get bankrupted instead of margin called. Their house is sold instead of the stock.
Same game, bigger market.
That being said I don't believe the "rich" or the "powerful" are doing it. I don't believe in Conspiracy theories. I think this "movement" is inherent in the nature of the market and the humans who play around it. It burns both the poor and the rich, but it magnifies inequality whether by making the rich richer or creating new riches.
1. You can't get all people to play this game.
2. You can't get people margin called if the stock price doesn't drop enough.
You can get 1 if you complicate loans (Mortgage based securities); and you can get 2 if you make the issue related to the whole economy. So people get bankrupted instead of margin called. Their house is sold instead of the stock.
Same game, bigger market.
That being said I don't believe the "rich" or the "powerful" are doing it. I don't believe in Conspiracy theories. I think this "movement" is inherent in the nature of the market and the humans who play around it. It burns both the poor and the rich, but it magnifies inequality whether by making the rich richer or creating new riches.