▲ 590 ▼ SpaceX Stock Plunge Wipes Out $600 Billion After Cursor Deal Spooks Investors (www.forbes.com) submitted 4 months ago by sanitation@lemmy.today to c/technology@lemmy.world 138 comments fedilink hide all child comments
[–] SaveTheTuaHawk@lemmy.ca 3 points 4 months ago (3 children) What moron bank would lend against no actual collateral. permalink fedilink source parent hideshow 3 child comments replies: [–] stringere@sh.itjust.works 16 points 4 months ago Almost all of them. That's how the Epstein class fund their lifestyles, they borrow against their stocks. This is why the Epstein class always want low interest rates; it is not about mortgages, at least not the kind where someone is homeless because they missed a payment. https://taxproject.org/carried-interest/ permalink fedilink source parent [–] Blue_Morpho@lemmy.world 1 point 4 months ago It doesn't make sense but Banks treat current stock price as a liquid asset. permalink fedilink source parent [–] EldritchFeminity@lemmy.blahaj.zone 1 point 4 months ago To add to what the other user said, this is why the rich convert their money into real estate wealth as well. Not only does it hold its value better than cash, it appreciates faster than any savings account ever could, and the wealthy take a loan out on it when they need cash, and then pay that loan off with money from a loan on a different piece of property. By repeating this over and over, they go their whole lives without ever having to actually give up any of their assets to pay off any of these loans, and when they die, the debt disappears alongside them. permalink fedilink source parent
[–] stringere@sh.itjust.works 16 points 4 months ago Almost all of them. That's how the Epstein class fund their lifestyles, they borrow against their stocks. This is why the Epstein class always want low interest rates; it is not about mortgages, at least not the kind where someone is homeless because they missed a payment. https://taxproject.org/carried-interest/ permalink fedilink source parent
[–] Blue_Morpho@lemmy.world 1 point 4 months ago It doesn't make sense but Banks treat current stock price as a liquid asset. permalink fedilink source parent
[–] EldritchFeminity@lemmy.blahaj.zone 1 point 4 months ago To add to what the other user said, this is why the rich convert their money into real estate wealth as well. Not only does it hold its value better than cash, it appreciates faster than any savings account ever could, and the wealthy take a loan out on it when they need cash, and then pay that loan off with money from a loan on a different piece of property. By repeating this over and over, they go their whole lives without ever having to actually give up any of their assets to pay off any of these loans, and when they die, the debt disappears alongside them. permalink fedilink source parent