Re:Musk announces funding secured for Twitter buy
by KptMarchewa on Thursday April 21, 2022 @10:59AM
(#31110286)
>He could mortgage TWTR and buy something else, but it would have to be smaller, because the banks won't loan 100% of the value of the thing.
Unless you're on robinhood: https://www.bnnbloomberg.ca/robinhood-traders-discover-glitc...
Musk has 100 billion of TSLA say.
He mortgages it to buy TWTR. Now he has 100 billion of TSLA, -40 billion loan against it, and 40 billion of TWTR. He could mortgage TWTR and buy something else, but it would have to be smaller, because the banks won't loan 100% of the value of the thing.
Or he'd have to make another $40 billion and pay off the first loan to mortgage it again.
Think of it as trying to use mortgage properties in monopoly to continue buying other properties.