[FoRK] August 2007 Update of The Second Great Depression

Adam L Beberg <beberg at mithral.com> on Wed Aug 1 18:23:24 PDT 2007

Lion Kimbro wrote on 8/1/2007 5:43 PM:
> On 8/1/07, Adam L Beberg <beberg at mithral.com> wrote:
>> For example you can right now open a currency trading account and get
>> 100x margin i.e. the broker will loan you $99 for every $1, and that
>> dollar could be a loan from a bank, and you're just Joe Public. Just
>> imagine what professionals can think up.
>   Waaaiiit-a-second here, ...
>   Is that really **true?**
>   Are you sure?

Yes. http://en.wikipedia.org/wiki/Retail_forex

"While up to 4:1 leverage is available in equities and 20:1 in Futures, 
it is common to have 100:1 leverage in currencies; some forex market 
makers offer up to 400:1".

>   Like, I sign up for E*Trade, and I know that you can trade on
>   margin.  I forget what the percentage was;  I think it was something
>   like "50%," maybe even 100%.  Hell, let's be gratuitous, and pretend
>   it's 200%.

No, Not E*trade (I use them). Major brokers are only 2:1, 4:1 if you're 
Rule 2520 (you're not), and they don't have Forex anyway.

Seriously, go think about puppies and jellybeans. Thinking about this 
stuff is really only safe for those or us with superhuman ability to 
remain rational.

Have several real skills that people would be willing to pay you to do 
if there was no electricity or running water, don't buy stuff you don't 
need (or anything from China), and you'll be fine.

Adam L. Beberg

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