Originally Posted by wbrown
I feel like this is a much better way of doing things. I wish I had known about this sort of thing many years ago. Sure the 401Ks and IRAs have some tax advantages over regular savings, but margin loans avoid taxes all together, are cheaper than mortgages, and you don't have to pay them back until you want to.
I think the risk grows as this catches on and more and more people do it. (And most probably get greedy and not be as conservative.) Once too many people are on margin then there's a true market collapse risk that gets exacerbated by the fact that the whole nation is getting margin called. And then it's doomsday. And would probably be a targeted scenario by market manipulators.
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