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This was what wiped famous vaudevillian Florenz Ziegfeld (1867-1932) out. Flo was famous for stiffing people who built the elaborate sets of his famous Revues between about 1917 and 1930. He also loved to litigate small sums just for the heck of it because after all, he was the great Flo! As the stock market was crashing in 1929, his broker kept trying to call him to get permission to sell shares that were quickly being wiped out, but he was in court once again on some petty lawsuit and couldn't be reached. After the settlement he returned to his studio to find that he'd been financially wiped out due to his own foolishness. He died only three years later and people who attended him at the end said he would cry like a baby at what he'd lost after the magnificent heights he'd attained in show business.
An investor’s margin account contains securities bought with borrowed money (typically a combination of the investor’s own money and money borrowed from the investor’s broker).
Things are going to get ugly real fast. Also a 30 year mortgage is now at 7%.
MicroStrategy Inc. may need to post additional collateral for a Bitcoin-backed loan as the price of the world’s largest cryptocurrency tests a key price level of $21,000 flagged by the company.
The software firm controlled by Bitcoin advocate Michael Saylor had used its vast Bitcoin holdings to secure a $205 million loan in March to buy even more cryptocurrency. But as the value of that collateral initially worth around $820 million falls to about half that, the company may need to provide more capital to back the loan.
(Bitcoin is below $21,000)
https://www.bloomberg.com/news/articles/2022-06-14/microstrategy-risks-margin-call-as-bitcoin-drops-below-21-000
Margin Call:
A margin call occurs when the value of an investor’s margin account falls below the broker’s required amount. An investor’s margin account contains securities bought with borrowed money (typically a combination of the investor’s own money and money borrowed from the investor’s broker).
https://www.investopedia.com/terms/m/margincall.asp
Things are going to get ugly real fast. Also a 30 year mortgage is now at 7%.