[quote=Coronita]But where’s prevalent is it’s done by really rich people where their pledged asset is several orders of magnitude larger than the loan amount…For example, a Mark Zuckerberg borrowed $5.95 million on a 1.75% ARM loan from Morgan Stanley, which as you know is an investment bank. So it was probably some pledge asset arrangement. Morgan Stanley was also the company that was the underwriter for Facebook’s IPO.
He later refinanced it to 1.05% 30 year
ARM loan from a standard bank.
Wishful thinking as this would be wide driver of people forced to sell.[/quote]
Exactly, this is the vehicle for the wealth. Not for your average joe. It allow them to get access to liquity of their stock investment without having to sell it. It’s a win win scenario. Low risk for the lender (easy money).
