On Mon, 17 Mar 2008 12:24:57 -0700 (PDT), milt.shook@[EMAIL PROTECTED]
wrote:
>And don't buy his crap about the condos. He demonstrates no knowledge
>of real estate or financial markets whatsoever. He doesn't even know
>what a margin call is...
<LOL> Here's Shook's "understanding" of a margin call...
"When you're (sic) margin is called, that's a liability, not an asset.
If you have an account with $100,000 in it, and you borrow $10,000 to
buy with, you only have $100,000 in assets; until you pay the loan,
that $10,000 is not an asset; it's a liability. When the margin is
called (for ****s and giggles, let's say for the full amount of
$10,000), there is no way to say that you haven't lost $10,000. In
fact, you're actually out $20,000, because you're out the $10,000
for the loan and the $10,000 to call the margin."
-- Milt Shook Apr 2007
http://groups.google.com/group/alt.impeach.bush/msg/a39f580c3012e718?hl=en&
....and Milt hasn't yet explained how a $10,000 margin call will result
in a $20,000 loss, presumably above and beyond whatever loss of market
value in stock precipitated the margin call....
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