(Dec 25): Billionaire Elon Musk has warned against something he himself has done — borrowing against the value of securities one owns — because of the risk of "mass panic" in the stock market. "I would really advise people not to have margin debt in a volatile stock market and you know, from a cash standpoint, keep powder dry," Musk said in the All-In podcast released on Friday. The warning, at least the second made by Musk this month, was ironic given the billionaire had previously pledged his Tesla shares. As of December 2020, Musk had 92 million Tesla shares pledged as collateral, according to an US Securities and Exchange Commission filing in April 2022. During the podcast, Musk also reiterated his belief that the economy was overdue for a recession and that the slowdown could be similar to the scale seen in 2009.

Source: The Edge Markets December 25, 2022 09:23 UTC