• ChickenLadyLovesLife@lemmy.world
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    2 hours ago

    Doesn’t even have to sell any of it. Just borrows against it as collateral and pays the loans off with new loans borrowed against the ever-increasing value.

      • krisevol@lemmus.org
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        28 minutes ago

        People do this all the time, and it works until you try to realize the gains and it all falls apart. There is a guy that was worth 2 billion that took out loans. He went bankrupt overnight when the loans were called in and selling his stocks caused a cascade. Literally went broke overnight.