Prediction evidence

Ma

CRG

@MacroCRG

the idea that Elon could loan against his entire $1t net worth is, yet again, nonsensical, so let’s break it down firstly, regulatory single borrower limits mean no bank can lend more than 15% of its capital and surplus to one entity - so theoretically to get anywhere near $500bln in loans (assuming 50% LTV) he’d need to go to 50+ major banks… all of them being exposed to the same collateral (two volatile stocks) at the same time this would never be allowed to happen, regulators would intervene due to the enormous systemic risk to the financial system to put into perspective: JPM’s entire loan book is $1.49T across millions of borrowers let’s say he actually tried to do this, the moment it became public that Elon was pledging his entire stake in both companies, markets would panic and it would cause a catastrophic black swan event let’s say he actually did manage to loan against a big chunk of his net worth, he’d get margin called (due to the systemic risk he introduced) and his $tsla / $spcx positions would get nuked sending them both to 0: all the problems I highlighted would come to fruition anyway Elon has loaned against his stocks before but at a SIGNIFICANTLY smaller scale. it does not and could not work at this level pls guys i beg use ur brains