Saturday, November 15, 2008I loved that George Soros kept it real in Congress and said, flat-out, the hedge funds will be decimated.
At one point, he called for stricter margin requirements. Right before the Great Crash in 1929, margin requirements were headed toward 50%. In fact, economists cite this as an indication that brokers were beginning to panic as the crash neared.
Now, farther down this blog, I highlight CNBC's highly specious Million Dollar Challenge. It attracts people to trade currencies for big prizes, like airplanes and a half-million dollars. People are invited to open a $25 account, which mysteriously, with the magic of leverage, will enable them to trade $9,000 dollars in "REAL money." And this, without people making any deposits whatever. No margin requirements here.
I suspect that margin requirements have not gone up lately, as a rational market would make them do with such risk out there. I can't find any stats on our present margin requirements ('cause I'm just too fucking lazy to do the search), but...
Posted by Penn @ 3:18 PM | |