this post was submitted on 19 Mar 2024
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General Discussion

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[–] noisefree@lemmy.world 4 points 7 months ago* (last edited 7 months ago) (4 children)

Can you explain what you mean by this?

Collateral for loan is realized gain

Functionally how would that work? Maybe I'm being obtuse here, but it sounds like a Catch-22.

[–] toiletobserver@lemm.ee 2 points 7 months ago

Under the current system, i think we'd call these interest only loans. It only works in a scarce resource situation that drives cost. And we do exactly this to eliminate private mortgage insurance, a debt to equity ratio.

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