Dave Ramsey's $1 BILLION Loan 💀

TL;DR

Dave Ramsey irrationally refuses a hypothetical 0% $1 billion loan despite the obvious arbitrage opportunity of parking it in 5% treasuries.

Key Points

• 1.Dave Ramsey flatly refuses a 0% $1B loan even with risk-free profit available. When offered a hypothetical $1 billion at 0% interest for 10 years — enough to earn 5% in treasuries and pocket the difference — Ramsey simply said 'No. I don't borrow money.'
• 2.The hosts speculate Ramsey's refusal is psychological, not financial. Their best explanation is that Ramsey's life is already set and he doesn't want the mental hassle or even a 0.00001% risk of something going wrong.
• 3.The rational move for most people is to always take 0% money. The hosts agree that outside of Ramsey's unique personal philosophy, virtually anyone should accept free money and invest it in safe instruments like treasuries.