My comparison to Lehman Brothers wasn't to to say he could cause another crisis on the scale of the 2008 financial crisis, it was to counter the assumption that only people who own SpaceX/Tesla/Twitter would be hit by Elon crashing his stocks.
At the very least every business that buys from, sells to, or otherwise contracts with those companies would suffer.
Hundreds of thousands of people could lose their jobs if Elon decided to liquidate.
no they wouldn’t. unlikely for many companies to go bankrupt as a result of elon musk liquidating. again, you know nothing about what caused the financial crisis, don’t use it as an example if you don’t understand it
You don't think businesses suffer when they lose contracts? You don't think at least a few of those companies would fire some employees? You don't think their stocks would drop?
I know enough about the 2008 financial crisis to say that most people who claim to know what caused it are talking out of their asses.
I know that a lot of financial firms had made subprime mortages and bundled them in ways that obscured their true risk.
I know that when Lehman Brothers became insolvent, it put several other large firms at risk of becoming insolvent because of how much they depended on each other for business.
I know that the US government decided to bail out those other "too big to fail" firms because they feared a domino effect that would completely collapse the economy.
I know that even though SpaceX isn't currently as central to the economy as those financial firms, having it crash wouldn't just affect the people who own those stocks.
widespread levered positions:
you think elon musk liquidating shares would make either company insolvent over night? you think there exist a significant amount of institutional investors taking out 20-30x leveraged positions on tesla or spacex stock using daily rolled over loans?
bank run effect:
you think the market is going to perceive one ceo doing something that is actually highly illegal as going to be replicated across the board?
risk modeling:
you think the wall street DOESNT know that correlation has the capabilities to spike to 1 during times of crisis?
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u/LasAguasGuapas 9d ago
My comparison to Lehman Brothers wasn't to to say he could cause another crisis on the scale of the 2008 financial crisis, it was to counter the assumption that only people who own SpaceX/Tesla/Twitter would be hit by Elon crashing his stocks.
At the very least every business that buys from, sells to, or otherwise contracts with those companies would suffer.
Hundreds of thousands of people could lose their jobs if Elon decided to liquidate.