Re:The Death of the Middle-Class Musician
by eru on Sunday June 29, 2025 @09:59AM
(#44413229)
I broadly agree with everything you say.
> Sure, but this isn't the infinite money glitch people seem to think it is. The loan and its interest have to get repaid with... money! That's first taxed! And anything purchased is... subject to taxation!
Interestingly, my broker lets me just pile up the interest and doesn't expect me to pay anything back, but only as long as my overall portfolio is worth comfortably more than my debt.
Of course, if I ever want to actually get at all my money, I'll need to pay the debt off.
Btw, leveraging your stock portfolio isn't all that different from a mortgage on your house. But people seem to be much more confused about the effects of the former than the latter. It seems to be easier for people to understand that a mortgage ain't an infinite money machine.
> Sure, but this isn't the infinite money glitch people seem to think it is. The loan and its interest have to get repaid with... money! That's first taxed! And anything purchased is... subject to taxation!
Interestingly, my broker lets me just pile up the interest and doesn't expect me to pay anything back, but only as long as my overall portfolio is worth comfortably more than my debt.
Of course, if I ever want to actually get at all my money, I'll need to pay the debt off.
Btw, leveraging your stock portfolio isn't all that different from a mortgage on your house. But people seem to be much more confused about the effects of the former than the latter. It seems to be easier for people to understand that a mortgage ain't an infinite money machine.