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[+] -18 points 1 year ago (2 children)

Source on him using Tesla shares as loan collateral? That's not really how loans work

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  • [–] 19 points 1 year ago* (1 child)

    I mean you usually need something to back your loan. Seems to me that is exactly how loans work.

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  • [–] -1 points 1 year ago (1 child)

    I mean it's totally possible to set up weird loans like this, but I'd love to see some information proving that's what Musk did for Twitter

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  • [–] 5 points 1 year ago

    Again, this is not weird in upper echelon financial strategies. And a quick search with the terms "musk Twitter Tesla collateral" got me a link to this article. You only have to read the first sentence for corroboration. And if you don't trust an article posted by NASDAQ for information about stocks, I dont think I can do more to help you.

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  • [–] 8 points 1 year ago (1 child)

    That's not how loans work for little people.... It totally is how loans work for oligarchs because the money they get from the loan provider is tax free so no income tax.

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  • [–] 4 points 1 year ago

    Yep. It's called "Buy, Borrow, Die" and is the main way billionaires avoid taxes. They hold all their stocks and never sell them. Use the stocks as collateral to take out massive low interest loans, and live off the tax free loans until they die. Banks are happy having Billionaires business and Billionaires are happy paying significantly less than they would on interest than they would on taxes for selling shares.

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