Loading ...It wasn’t like I hadn’t thought the Market was overbought..I had reduced my Margin from 50% to 40 % (60% equity)..I had rode out the “82” correction without any trouble like that ..It was the suddenness of it when I dropped to what was below the minimum that was required at the time an area between 50 and 37% Margin I was required to bring it all back to minimum 50%prior to that all you needed to do was stay above 37% and you could ride out ! The minute it dropped below 37% all of it came due at once!. Up to that time My Margin expense was 50,000 per year ,but I thought it didn’t matter since I was making gains of 75 to 100,000 with the money !
It was free money and to boot I could deduct Margin Interest off of Earned income ,so Uncle Sam was subsidising my portfolio …You can’t do that any more ! Instead of paying taxes the Gubberment was subsidising my portfolio …I had it all figured ! It worked until it didn’t !