He doesn't have the credit.
Gotta love ZERO RISK in the SP500 = $$$
- Thread starter makloda
- Start date
He doesn't have the credit.
The S&P was locked limit down, Carl Ichan steps in and buys 10,000 ES. Then gets on the phone and tells his billionaire buddies 'Blue Horseshoe loves Donald Trump'. The markets have been rallying ever since.
then he could bargain with bank for higher rate. If he's able to pay it off early, then it's a bargain (cost of money is cheaper than the cost of margin). If one does this many times with a bank, he's established a trusted relationship with the bank, they even give him a credit line at lower interest rate.
Also, he knows how to trade the markets or else it'd be double edge sword (losing money and having to pay back the loan at the same time).
Bull market started a few years ago?!?!
Don't you mean more reward than risk?
Bull market started a few years ago?!?!
1982-1999 bull market??...haha
Well at least during those bull market years you were getting 5-15% in CD's and money markets!!!
Also real estate was in the hole....prices dropped hard in the late 80s early 90s.....I have a friend who picked up a house for $250,000 in 1997 and today its worth approximately $800,000 ....he rents it out for a cool $5000 a month.....now today you can't even touch the houses in and around certain areas since prices have skyrocketed once again...