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To: A.L. Reagan who wrote (40492)	3/19/2001 3:18:57 PM
From: Brian Sullivan	Respond to of 54805

It doesn't work that way. When you get sold out due to margin calls your net balance quickly approaches zero. You have zero dollars, and zero dollars available for margin. Margin Max ends up with nothing. Since one of the things that he purchased on margin was real estate and it typically doesn't decline 60-70 percent in a month. He probably ended up with that debt plus some stocks on margin that covered that debt. The net worth of his stocks minus the real estate loan is probably pretty close to zero. The reason that it looks better to you is that he hasn't lost any money on the real estate loan.