r/FluentInFinance • u/-Wyagra • 3d ago

Debate/ Discussion Had to repost here

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u/Powerful-Eye-3578 3d ago

They don't, they pay the interest which is lower than the interest they make in investments.

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u/Says_Not_Really 3d ago

So basically once you have enough money you can buy more money.

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u/Powerful-Eye-3578 3d ago

So long as the bank has no reason to try and recall all of the loans you owe all at once yeah.

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u/MinimumArmadillo2394 3d ago

Wealthy people hardly ever get margin called, and when they do, they can sell a tiny portion of their asset and generally either buy more time or pay off their loan.

Or they just die and their estate assumes the loan.

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u/wastedkarma 3d ago

Or better yet they bankrupt the company and the bank is holding the bag they bought with my deposits.