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Facebook-owned sites were down

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Re: Facebook-owned sites were down

#931

Post by osrec »

MichaelBurge wrote: post #915
osrec wrote: post #900

Earlier quoted context omitted.

Margin calls don't really exist as far as loans are concerned. Once you have agreed collateral, and an agreed schedule of payment, you only get in trouble if you miss a payment, regardless of how the collateral fluctuates in value.

I currently have a $150k margin loan, and it absolutely will lead to forced liquidation if the collateral drops in value: Interactive Brokers was clear about that. Separately, my bank tried to sell me a "Pledged Asset Line of Credit" that would also have required the collateral to maintain a certain value or there would be forced liquidations. Can you link an example of a bank or similar that lets you borrow against…

A margin loan is very different to the kind of financing agreement a company will enter into. You are using the money at IB to speculate, and probably purchasing volatile assets at that. A company will generally utilise that money very differently, and it is unlikely that a lending institution will accept shares as collateral due to the wrong way risk (i.e. if they can't service their debt, their shares are probably losing value too, so probably not good as collateral).

Re: Facebook-owned sites were down

#932

Post by gamacodre »

alexvoda wrote: post #890
Animats wrote: post #628

There's still no connectivity to Facebook's DNS servers: > traceroute a.ns.facebook.com traceroute to a.ns.facebook.com (129.134.30.12), 30 hops max, 60 byte packets 1 dsldevice.attlocal.net (192.168.1.254) 0.484 ms 0.474 ms 0.422 ms 2 107-131-124-1.lightspeed.sntcca.sbcglobal.net (107.131.124.1) 1.592 ms 1.657 ms 1.607 ms 3 71.148.149.196 (71.148.149.196) 1.676 ms 1.697 ms 1.705 ms 4 12.242.105.110 (12.242.105.110)…

Can someone explain why it is also down when trying to access it via Tor using its onion address: http://facebookwkhpilnemxj7asaniu7vnjjbiltxjqhye3mhbshg7kx5t... Or when trying ips directly: https://www.lifewire.com/what-is-the-ip-address-of-facebook-... I would have expected a DNS issue to not affect either of these. I can understand the onionsite being down if facebook implemented it the way a thirdparty would (a p…

The issue here is that this outage was a result of all the routes into their data centers being cut off (seemingly from the inside). So knowing that one of the servers in there is at IP address "1.2.3.4" doesn't help, because no-one on the outside even knows how to send a packet to that server anymore.

Re: Facebook-owned sites were down

#934

Post by jacurtis »

Animats wrote: post #805
Animats wrote: post #628

There's still no connectivity to Facebook's DNS servers: > traceroute a.ns.facebook.com traceroute to a.ns.facebook.com (129.134.30.12), 30 hops max, 60 byte packets 1 dsldevice.attlocal.net (192.168.1.254) 0.484 ms 0.474 ms 0.422 ms 2 107-131-124-1.lightspeed.sntcca.sbcglobal.net (107.131.124.1) 1.592 ms 1.657 ms 1.607 ms 3 71.148.149.196 (71.148.149.196) 1.676 ms 1.697 ms 1.705 ms 4 12.242.105.110 (12.242.105.110)…

"facebook.com" is registered with "registrarsafe.com" as registrar. "registrarsafe.com" is unreachable because it's using Facebook's DNS servers and is probably a unit of Facebook. "registrarsafe.com" itself is registered with "registrarsafe.com". I'm not sure of all the implications of those circular dependencies, but it probably makes it harder to get things back up if the whole chain goes down. That's also probabl…

Facebook does operate their own private Registrar, since they operate tens of thousands of domains. Most of these are misspellings and domains from other countries and so forth.

So yes, the registrar that is to blame is themselves.

Source: I know someone within the company that works in this capacity.

Re: Facebook-owned sites were down

#935

Post by odonnellryan »

gunshai wrote: post #887

Posting this comment will be like farting into a hurricane, but here goes. Company like Facebook has a serious problem and their stock drops ... precipitously. CEO of said company instead of selling their equity in their company has taken out loans against their equity in order to decrease their tax burden and cash in on the value of their equity. What amount of decrease would cause a margin call from lenders for the…

Nah. Almost certainly he could lose 100% of that value of the stock without being at risk of anything like this (as in, he probably put up $100m if he wanted a $50m loan, etc..)

Even if he didn't, the bank would let him move funds in without forcing him to sell.

Re: Facebook-owned sites were down

#939

Post by fieldcny »

osrec wrote: post #900
gunshai wrote: post #887

Posting this comment will be like farting into a hurricane, but here goes. Company like Facebook has a serious problem and their stock drops ... precipitously. CEO of said company instead of selling their equity in their company has taken out loans against their equity in order to decrease their tax burden and cash in on the value of their equity. What amount of decrease would cause a margin call from lenders for the…

Margin calls don't really exist as far as loans are concerned. Once you have agreed collateral, and an agreed schedule of payment, you only get in trouble if you miss a payment, regardless of how the collateral fluctuates in value.

Loans based on assets like stocks/bonds/other assets with highly variable prices always have collateral requirements. If the loan is backed by 100M in facebook shares and the price of stock drops in half you will have to hand over more stock for collateral. If the price doubles, you can ask for your collateral back.

It is doubtful Z has any margin call issues as he has so much stock, I can't imagine he would have pledged even 5% of it for loans, so he can just hand them another chunk without even blinking (which he generally doesn't do any way)

Re: Facebook-owned sites were down

#940

Post by odonnellryan »

gunshai wrote: post #912
osrec wrote: post #900

Earlier quoted context omitted.

Margin calls don't really exist as far as loans are concerned. Once you have agreed collateral, and an agreed schedule of payment, you only get in trouble if you miss a payment, regardless of how the collateral fluctuates in value.

Okay, but as the value of the collateral approaches 0 your lender asks you to increase your collateral correct?

Yes. But banks won't loan 100% on equities.

This scenario would just be basically impossible.

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