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Robinhood will lend people money, so they can invest with that. Buying stocks with money that isn't yours. What could possibly go wrong here?
by lexo 9y ago
Robinhood will lend people money, so they can invest with that. Buying stocks with money that isn't yours. What could possibly go wrong here?
- mortehu 9y agoPeople do this when buying houses all the time, and often at a 5x or 10x margin, rather than just 2x. Even Vanguard supports this.
- scurvy 9y agoAt the end of the day, you can't live in a stock.
- devopsproject 9y agobut it does still exist
- AndrewKemendo 9y agoI think a few years ago there was a pretty big issue with that. Something happened...can't quite remember.
- scurvy 9y agoPeople watch margin interest and amount of margin buys very closely. They can be indicators of over heated or bubble markets (especially in emerging markets). China has basically endorsed margin buying to prop up their insanely overvalued stocks. They're about to enter their own too big to fail territory, but I digress.