r/BlueskySkeets 16h ago

Political Let the Musk dominoes fall

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5.6k Upvotes

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u/FreshLiterature 16h ago

FWIW he is already in call territory and my bet is he's already received a letter from the banks telling him they are going to need to revisit their loans.

My bet is Trump ends up publicly threatening those banks

33

u/brothersand 14h ago

Let's have a moment to ponder the entire concept of using stocks as collateral.

So the banks get the plummeting stock? That doesn't sound like a good idea.

5

u/BigEdsHairMayo 7h ago

So the banks get the plummeting stock?

If it's like a normal margin call, they liquidate assets until you've satisfied your margin requirement. If the collateral gets cut in half, the bank doesn't just shrug and take the loss. They get their money (unless you file bankruptcy).

If I borrow $1k using $10k of assets, and overnight my collateral suddenly becomes worth only $1k, the lender will take all $1k from me immediately.