this post was submitted on 07 Oct 2024
208 points (96.0% liked)
Technology
58531 readers
4442 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Take what into account? They basically look at current valuations and offer loans up to some fraction of that amount.
And that's generally the way the ultra-rich operate, they don't actually sell anything, they just borrow against their assets. They punt the can down the road until they die, at which point those unrealized gains get stepped up in basis for those who inherit it. If you have enough stock assets, you can service the debt with the capital gains you're forced to realize (i.e. dividends).
So the bank sees someone with $100B in assets asking for a $10M loan or whatever, and they're completely happy to offer that, because even if the stock gets cut in half, he can still pay the debt.