And if the stock tanks, then I guess you declare bankruptcy.
Yeah, ultimately, it is kind of a ‘house of cards’. The only reason this strategy works at all is because it’s predicated on the market value of the assets being used as collateral continuously increasing, and not just increasing, but increasing at a greater rate than inflation and the interest rate on the debt, combined.
Yeah, ultimately, it is kind of a ‘house of cards’. The only reason this strategy works at all is because it’s predicated on the market value of the assets being used as collateral continuously increasing, and not just increasing, but increasing at a greater rate than inflation and the interest rate on the debt, combined.