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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (73102)1/9/2000 12:23:00 AM
From: Simba  Read Replies (1) of 132070
 
MB and others:

One of my friends told me that it is common for Microsoft employees to use their options as collateral for buying a home. How will the lenders cover in the event of a market selloff ? I couldn't understand the large amount of speculators buying securities on margin debt and home equity debt, but here is a case where money is lent to buy hard assets based on fictitious collateral.

Any comments ?

Simba
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