Hi Saturn V RE: Silicon Valley rife with Cisco's poor health
Another sad story for you Saturn, a contact of mine that had a couple of M earned through hardwork from vested CSCO options, lost all his money by applying margin to it all. Not sure why he used margin, when he could have taken the money and written cov calls to generate a premium of 500k/yr. It just doesn't make any sense to gamble with margin - and all of it too. He has a family, a baby. Now he has zilch to support them. He also has a horrible 6-digit tax bill to pay too (as if losing all your money wasn't bad enough, he's in debt to the IRS). He liquidated his 401k money too - that really hurts. So many bad stories now, getting worse it seems. I guess people were hoping the market was going to turn around. There's some new panic home selling going on around here today.
edit: In one Silicon Valley city, the homes-for-sale jumped 200% month over month. (Jim McMannis was right).
All I can say is, if folks are still on margin, get off of it first thing. Consider it a drug that shouldn't be used, especially folks with families, where other lives are dependent upon them. It's incredibly painful for folks to go through, including the person that made the error. Heard yet another bad story, it's about an Intel veteran, retired too, who just lost all of his money on margin. Very sad. A family too, with folks dependent upon him. Margin is scary stuff.
Regards,
Amy J |
