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As mentioned in another comment, its a loan, not free cash. Investment banks will have to pay it back afterwards.
by surge 7y ago
As mentioned in another comment, its a loan, not free cash. Investment banks will have to pay it back afterwards.
- macawfish 7y agoSure, but it's basically free money for them because they'll turn around and loan it to the rest of us with higher interest rates.
- JumpCrisscross 7y ago> it’s basically free money They can only borrow to the extent they have collateral. You can do the same thing. Any decent broker will let you margin Treasuries on the cheap.
- kortilla 7y agoNo, this is short term lending (e.g. overnight).
- ajross 7y agoWhy can't social security pay back a loan? It has revenue, it requires management and accounting for its assets anyway. We take loans from the trust fund constantly! There's absolutely no reason this can't be done.