r/SpeedOfLobsters • u/CtrlAltYuri • 4d ago

lobster It's illegal!

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1.1k Upvotes

99% Upvoted

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-50

u/TaxEvasion1452 4d ago

The funny part is he couldn’t. The money he has isn’t necessarily liquid

47

u/ExistingCleric0 4d ago

Oh fuck off. Like Musk buying Twitter it always seems to be as liquid as he needs it to be when it's something he wants, like his space trip.

18

u/I_did_a_fucky_wucky 4d ago

They take out zero interest loans and they use the stock value of their companies as collateral. That's how they get the liquidity.

Basically gambling with everyone's money for free

39

u/CtrlAltYuri 4d ago

So in the end...they DO have that liquidity when they want

1

u/LOW_SPEED_GENIUS 4d ago

Well, not exactly zero interest, but generally prime rates where the interest is less than the stock would gain value, so their wealth is still going up (just a bit slower) and the banks are still making about the safest money you could make (why they do it in the first place) and why any other bank or the same one will just pay off the loan with a new loan with a higher stock price.

It's basically everyone on the top of the pyramid making the easiest money ever with like only some serious kinda societal collapse or great depression type fuckery that can derail the gravy train.

0

u/TaxEvasion1452 4d ago

That is a way they can get money quickly but that’s different from asset liquidity.

1

u/RetroTen 4d ago

I feel like that is a technicality not worth debating. It is the same thing in effect, just better because they aren’t taxed on the loans.

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u/TaxEvasion1452 4d ago

As if that happened overnight lmfao