Hypothecate
A word smart people use when they mean hypothecate, and a word stupid people who want to look smart (read: Investment Bankers) use when they mean hypothetical.
A classic marker of when you're talking to an idiot who doesn't know it yet; like when people say "pacifically" when they mean "specifically" or "expresso" when they mean "espresso".
#Can'tFixStupid
A classic marker of when you're talking to an idiot who doesn't know it yet; like when people say "pacifically" when they mean "specifically" or "expresso" when they mean "espresso".
#Can'tFixStupid
Investment Banker: “Can you give me some hypothecated numbers?”
Investor: "No, you douche, that's not a real thing. Go read a book."
Investor: "No, you douche, that's not a real thing. Go read a book."
De-hypothecation
The reversal of re-hypothecation leveraging. When the loss in value of the underlying assets in the brokerage's account forces the reversal of when a broker pledges hypothecated client owned securities in a margin account to secure brokerage funds. The result being possible disappearance of the commingled funds from the client's account.
The bank's President could not account for his customers funds because their rehypothecated accounts had experienced de-hypothecation and as a result their value was no longer held by the brokerage. (i.e. 1. MF Global/JPM. 2. City of London and Euro collapse.)