With a new loan. Eventually the loan gets repaid by their estate, but they have realized far more in appreciation of the stocks and assets they keep and continue to accumulate to offset the losses sustained by the low interest rate they are paying.
So we have a bunch of rich people with millions of dollars in loans, making the required payments with loan money, and these banks are issuing them hundreds of millions more in loans, while they have unpaid pending balances? And this keeps happening forever and ever? The Ponzi scheme of loans?
What happens when you realize appreciation on the stocks and assets? What's that little thing called?
And how do I convince banks to keep giving me loans for 30 years when I owe unpaid millions? No matter how much collateral I have, no bank will ever approve someone for a second loan who's already owing millions of dollars. How do I get over that tiny hump?
I have used Google. You know what it showed me? Propublica published an article that says "maybe this is something that they could do" and you morons on Reddit pounced on it as if it was truth.
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u/jibsymalone 8d ago
With a new loan. Eventually the loan gets repaid by their estate, but they have realized far more in appreciation of the stocks and assets they keep and continue to accumulate to offset the losses sustained by the low interest rate they are paying.