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Or even just saying "loans above $N are a taxable event", and make that value like $500,000. This would allow like 99% of the population to actually borrow aga
by tombert 3y ago
Or even just saying "loans above $N are a taxable event", and make that value like $500,000. This would allow like 99% of the population to actually borrow against their stocks in the case of an emergency without having to liquidate their stocks or be punished for it, but $500,000 is nothing for a Bezos or a Musk.
- xur17 3y agoThis would only stop borrowing via loans that are collateralized by stock assets. These banks would presumably still offer uncollateralized loans to these folks (you have $X billion dollars, I'm confident you'll be able to pay off a loan for 2% of that, here you go, no collateral needed). Then, the end effect will be slightly riskier loans for the banks, and slightly higher interest rates for the billionaires. And if you set the limit at $500k, you're going to block rich, but not super rich folks from taking out loans to start new businesses, etc. To me it seems this would hurt more than help.
- tombert 3y agoFair! What I don't know about this stuff is a lot. I'd actually like to see an economist break down what they think is the best way to approach this.
- sokoloff 3y agoThat would have a substantial cooling effect on the housing market as well. (I don't think that's a good thing, but some may.)