4 ms·
No tax perhaps, but interest has to be paid. Of course, in a ZIRP fantasyland the interest is negligible.
by throwaway210222 5y ago
No tax perhaps, but interest has to be paid.
Of course, in a ZIRP fantasyland the interest is negligible.
- e12e 5y agoIf the choice is 40% tax or 2% interest...
- kristjansson 5y agoI mean, long term rate is 20%, so taking a margin loan at 2% to finance consumption is a bet that you have less than 10 years to go…
- papercrane 5y agoThat's assuming the asset that would've been sold doesn't increase in value. It's likely that the asset will increase in value more than the cost of the loan.
- koheripbal 5y agoYou are conflating assets and liabilities. Are you really suggesting people pay taxes on their liabilities? That would be insane.