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naniwadunitoday at 1:15 AM0 repliesview on HN

The trouble is that a bank is not lending against the nominal value of the stock as collateral. That number is almost entirely fictional. Taxation of capital gains at time of sale is less a loophole than a reflection of the difficulty of assigning a fair price to assets that are not perfectly liquid.

Also, you'd totally gut retail home equity lending as collateral damage, with disastrous social policy consequences.