Nice watch. The super rich like fElon are seemingly not paying with their stocks as claimed in the video but with loans they get from banks for very good conditions using their stock as guarantees. So when the stock price drops it might be worth less than the loan being granted. In that case the bank can demand the sum immediately causing the whole card house to collapse.
Surely aren’t taking out loans for an amount so large it would destroy them. It would still be a loss on top of a loss. And maybe force them to sell some shares unexpectedly.
Nice watch. The super rich like fElon are seemingly not paying with their stocks as claimed in the video but with loans they get from banks for very good conditions using their stock as guarantees. So when the stock price drops it might be worth less than the loan being granted. In that case the bank can demand the sum immediately causing the whole card house to collapse.
It’s being described here (German).
Surely aren’t taking out loans for an amount so large it would destroy them. It would still be a loss on top of a loss. And maybe force them to sell some shares unexpectedly.