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33 sats \ 2 replies \ @Undisciplined 14 May \ on: Leverage Mania: Mortgage Your 401(k)...or Yo Bitcoin (Money Stuff, Matt Levine) econ

Why would a financial institution lend to a 30 year old amateur investor, instead of having a professional risk neutral investor make those investment decisions?

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50 sats \ 1 reply \ @denlillaapan OP 14 May

I have no clue.

New, exciting market? Skip the middleman?

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20 sats \ 0 replies \ @Undisciplined 14 May

It seems like either way they're relying on someone investing it, so the choice is a 30 year old with no clue about anything or a professional investor.

Maybe there's an incentive argument, since the person levered up like crazy has more skin in the game.

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