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The Rules of Margin Collapse

joshwcomeau.com

11–20 of 35 posts

Re: The Rules of Margin Collapse

#11
post #5

That’s because too many hedge funds and other speculators have been borrowing on margin, and that leads to collapse. Regardless of what rules are set up to regulate this, rampant speculation and bubbles can always destabilize a market and lead to collapse! You see, what happens is that capitalism rewards the greater risktakers and when the success stories have survivor bias you end up with — oh we’re talking about CS…

I think the title should definitely be changed to not be misleading ;)

Re: The Rules of Margin Collapse

#13
post #5

That’s because too many hedge funds and other speculators have been borrowing on margin, and that leads to collapse. Regardless of what rules are set up to regulate this, rampant speculation and bubbles can always destabilize a market and lead to collapse! You see, what happens is that capitalism rewards the greater risktakers and when the success stories have survivor bias you end up with — oh we’re talking about CS…

The first paragraph on its own fits quite well, given the average amount of article-reading that happens here.

Re: The Rules of Margin Collapse

#15
post #4

One of those things I've just been subconsciously dealing with for years without ever deciding to actually learn the rules. "Damn it collapsed. Okay padding then"

A lot of CSS works this way, until the fateful day you have to fix something and finally spend a day investigating how exactly it works.

Re: The Rules of Margin Collapse

#18
post #4

One of those things I've just been subconsciously dealing with for years without ever deciding to actually learn the rules. "Damn it collapsed. Okay padding then"

Same, though for me it's probably more like:

"Add margin. More margin. Moooore margin!! Oh wait.."

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