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submitted 14 hours ago by CAVOK@lemmy.world to c/europe@feddit.org
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[-] 87Six@lemmy.zip 31 points 13 hours ago

If you're worried about this... I'd say be wary of your situation. Have enough accessible cash for 6 months to a year of okay living. And if it does dip a lot, buy into it with some of that money.

And don't sell. The only time you should sell is when you're approaching the time you need to take everything out, like if you're approavhing a house purchase, old age or such.

And good luck

[-] snoons@lemmy.ca 37 points 12 hours ago

Oh dang, I only have enough cash for zero months. ...where'd I put those bootstraps...

[-] HieroProtagonist@feddit.org 5 points 8 hours ago

Breath and talk to myself "No, you will NOT make some highly inappropriate joke about zero money, bootstraps and necks..." breath

[-] 87Six@lemmy.zip 14 points 12 hours ago

Look man... I'm sorry...

I don't know what to tell you. It's terrible being so tight on money. I don't have advice to give on that, because all I did was get lucky to not be working minimum wage...

But I have some semi-informed advice to give about keeping money safe and wanted to share...

[-] snoons@lemmy.ca 13 points 11 hours ago

Oh, I didn't mean anything by it lol. Soz.

[-] paulcdb@lemmy.radio 6 points 10 hours ago

Think of it like this, no money = nothing to lose!

There’s plenty of sources claiming how people like Elon have so much money in loans, when the crash comes the banks will quickly move to recover those debts.

On top of that, all you see are rich people telling others the way to get rich is getting loans upon loans. Well when the crash comes and again, you can no longer repay the loans, it’s going to hit hard! So much money is tied up in pretend money on gains that don’t exist!

Right now having no money is probably safer, my plan is getting out of debt as much as possible, as quick as possible. Hell, if it hits hard enough people might end up going back to trading goods for goods! 😂

[-] bufalo1973@piefed.social 3 points 9 hours ago

Can you imagine if someway all the debts in the world were balanced? That if A owes something to B and B owes something to C and C owes something to A the debt becomes the difference? And this on a world level.

[-] 87Six@lemmy.zip 2 points 8 hours ago* (last edited 8 hours ago)

Well when the crash comes and again, you can no longer repay the loans

Well, is that the case? Afaik when they loan with a stocks amount as collateral, the X units of stock are the collateral, not the Y value of stock.

They just set aside more collateral value than the loan is worth. Say if you loan 1k the collatelar assigned will probably be 2-3k.

If the stock holding value gets dangerously low, the lender can liquidate your stock I think

But, EVEN THEN, the NET worth of say, Musk, doesn't change too much in that case. Because net worth already has all debts subtracted from it.

It would change in the value equal to the difference between the loan value and the liquidated collateral value I guess, but I don't imagine that would be very large? This part I'm unsure about.

So even in the end I don't think they lose too much...

this post was submitted on 19 Aug 2026
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