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Sure, 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.
by macawfish 7y ago
Sure, 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).