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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (78449)	8/24/2011 11:08:26 PM
From: Hawkmoon	Respond to of 217906

real estate comes to mind :O) Yep.. IMO, Real Estate is the ULTIMATE in excessive use of margin. You take out an 80% loan against the underlying collateral value of the home/property, supposedly putting up only 20% of your own money on the purchase to give you "skin in the game". And during the past few years, home loans for 120% of value were being offered by the banks.. Now.. translate that into terms of margin use in stock markets.. "Mr Banker.. I would like to borrow $1 million to buy some stock.. How about you loan me $1.2 million so that I can cover payments and give me some spare pocket change.. After all, you know stock can only go up in value".. Hawk