Earlier quoted context omitted.
Well the question is what's a more appealing place to put your money? Because in the absence of one the stock market by default is viewed as an appealing place which drives up demand for it. You might say well folks should just spend their money and enjoy it instead of putting it in the market but that's a whole different strategy. You might say folks should buy real estate well that's a whole different strategy. You…
> What will trigger the downturn will be folks who've overextended themselves on margin forced to sell in order to liquidate assets Curious question... do the ultra wealthy ever get margin called on personal loans secured by unsold equity? I'd assume the folks we're talking about doing that have sufficiently small loan to value (a year's expenses vs all their stock) to avoid, even in a downturn. Maybe at the more upp…
Re: Berkshire's $397B Bet Against an Overheated Market
#131Absolutely anyone can get called if thr bank deems there's a payment risk