Fri, 30 Nov 2012, 10:35am PST
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His financial advisors used a two prong, no-fail strategy: margin calls in stocks buffered by leveraged real estate.
Who'd of thought they would both collapse simultaneously? Apparently, this was a popular, "no risk" ploy for a lot of wealthy investors trying to become even richer. If the stocks failed, the real estate wouldn't. If the real estate went down, the stocks would make up for it etc. etc. If both leverages went up, bingo, casino night for the rich becoming ultra rich.
It is sad when two black swans collide. So much for financial experts.
Poor guy having to scrape by on a measly 4 million dollars. It's like all of those unfortunate movie stars down to their last ten million. Maybe welfare so these deserving types can slum it with a 30 million dollar lifestyle which they so righteously deserve.
Thu, 29 Nov 2012, 10:50am PST
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I'm not surprised. From the article, it looks like he had all his money tied up into 4 or 5 high end properties. One of them he paid 25 million for it. It's really no different than an real estate "investor" that had 4 or 5 houses during the height of the bubble, just a few extra zero's at the end of the prices.