Will a bank give you a line of credit to buy stocks?

Guys, what if I don't say what the money is for.

I just go to a bank, and say I want to get a line of credit just in case I want some side money in the future to do certain things, remodel the house, repair cars, take a nice (and deserved!) vacation, etc. etc. I am willing to personally guarantee that line of credit.

So I wouldn't borrow anything up front, but would be given a whatever, call it [$300,000] line of credit. I might never borrow on it. But if VIX hits 80 and the markets are in total panic mode, then I would borrow that [$300,000] and invest [$600,000] in a wide, well diversified list of stocks. I would personally guaranty that amount so I can't imagine the bank would care too much about what I was using it for.

Is this something that can be done?

Thanks.

 

Banks only lend you money when you don't need it. If you can score a line of credit for 300k on a personal guarantee, you probably don't need it.

 

I do if all my cash is tied up in an investment account and I'm at close to 200% invested!!!

 

Only if you are related to J. Wellington Wimpy.


Have to be older than dirt to know of that guy.

 

With what?

What is backing the guarantee? Your word?

 

I guess I'm not older than dirt yet haha.

 

All my assets. Cars, properties, investment accounts, personal assets, etc.

 

Probably but Wimpy appears in Robert Altman's 1980 live-action musical filmPopeye, played by Paul Dooley

 

A personal guarantee is not an asset backed guarantee. You're mixing the two up.

 

If you loan me $100, you can come after all my assets to get your $100. At least assets that I have not already pledged to other creditors. I think at least haha.