You are
actually borrowing against your next pay check.
Borrow Against the Policy: Because the cash value is generating additional income, you can
actually borrow against the policy if needed.
Yellen showcases that you can
actually borrow against your policy cash value — a unique feature compared to the typical IRA.
Not exact matches
But mostly what we do is
actually something called a repo, which is we lend or
borrow money from the banking system
against collateral (normally a government security), but also bank paper as well.
So, what happens now is they
actually can't sell the houses because they didn't
borrow against the house.
No doubt Ed will have more info on this, but the paper «Betting
Against Beta» by Frazzini & Pedersen to which he refers above can be found at http://www.econ.yale.edu/~af227/pdf/Betting%20
Against%20Beta%20-%20Frazzini%20and%20Pedersen.pdf The basic idea of the paper is that investors are apt to bid up high beta stocks because it's a way of leveraging their portfolio without
actually borrowing to invest.
It's prudent to factor a year's cash - burn into my valuation (AEX has confirmed it needs to
borrow against, or sell, its US assets to
actually fund its plans).
Community college students sometimes feel compelled to do so in order to ensure they qualify for a certain amount of financial aid, but if you end up dropping courses, this
actually works
against you, because you'll need to
borrow more to re-take those courses in the future.