rich people super rich are taking loans now why? what it means ?

[cryptoboss2020]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?
what we can expecing? the property prices will go higher?

https://www.bloomberg.com/news/articles/2020-04-09/ultra-wealthy-pull-cash-from-mansions-to-buy-beaten-down-assets

[The Sceptical Chymist]

OP, that article is 6 months old already.  Were you that desperate to start a new thread that you had to go digging through Bloomberg's archives?

Here's the answer to your question:

Enness, a mortgage broker that caters to the wealthy, said more clients are seeking loans backed by real estate to help them repay other debt, invest in businesses and snap up cheap assets in the wake of a pandemic-driven rout of global markets.

And the beaten-down assets were only temporarily beaten down at the start of the pandemic--about 6 months ago.  Perhaps if you did some closer reading and used a little more brainpower you could have figured it out yourself.

[Broly46]

It’s nothing new, real estate, real definition “royal estate”, it’s not real, it’s the estate belong to the royal family, you the property owners are just “leasing it”, although some with lenient rule free hold and lease hold, they’re both still the royal estate, although freehold are miles better than leasehold, for century real estate has been evergreen investment for richest, using property as the leverage against another property, it isn’t some straightforward business deal, but it’s way less risky than leveraging property on stock market. It means property is still a good investment.

[fiulpro]

See if we are talking about Rich people, they do have a lot of maintenance and at the same time most of the times people take EMI, now these EMI in the end are expensive to pay altogether.

Therefore I do think:

Loans of property
EMI
Loans of cars
Credit card payments
Etc

All these things take a lot of toll our of a person during pandemic, even if he is rich.

How try and imagine the same for the people who are poor or middle class.?? They did get hit the hardest during this pandemic and I believe government cannot help each and everyone so we have to work hard and keep social distancing while respecting the things we must do during the pandemic.

We cannot go to work, but we can work online. Things like that would save us. We need to adapt.

[NeuroticFish]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?

Rich people have always loaned money. And the article, although old, tells from the start what they do with the money: buy cheap all the assets that have short-term problems and good chance to rise in the future.
Since they do have plenty of money, even if it's locked into another valuable assets, getting loans is an easy way to get liquidity.
Nothing new under the sun.

Since the article is from April (!) I really don't know what's the reason for this topic... an attempt to scare the newbies?

[cryptomaniac_xxx]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?

Rich people have always loaned money. And the article, although old, tells from the start what they do with the money: buy cheap all the assets that have short-term problems and good chance to rise in the future.
Since they do have plenty of money, even if it's locked into another valuable assets, getting loans is an easy way to get liquidity.
Nothing new under the sun.

Since the article is from April (!) I really don't know what's the reason for this topic... an attempt to scare the newbies?

Or to show how it is made? But this kind of strategy doesn't cater for everyone obviously. So I wouldn't go that route, or maybe I will make a loan but I know that I can fully pay it off. Those rich has a lot of leverage with their assets as collateral. And then buying cheap and selling in the future take the profits paid the loan and they still have some in their pocket, perfect strategy for them.

[NeuroticFish]

Since the article is from April (!) I really don't know what's the reason for this topic... an attempt to scare the newbies?

Or to show how it is made? But this kind of strategy doesn't cater for everyone obviously. So I wouldn't go that route, or maybe I will make a loan but I know that I can fully pay it off. Those rich has a lot of leverage with their assets as collateral. And then buying cheap and selling in the future take the profits paid the loan and they still have some in their pocket, perfect strategy for them.

The rich people do afford to lose most of the assets they've used as collateral and they'll still be rich.
Normal people should not use loaned money for any kind of investments.

Indeed, that's not the path to follow. So not much use to "show how it is made" imho...

[Harlot]

rich people around the world taking loans?

This is not something new in fact if you look at any annual reports found in the internet and just search under the liabilities keywords such as accounts payable and notes payable you will see that most if not all companies have them. I know they can afford to use all their money for their expenses but taking out loans is the most ideal way to make the most our of your budget as cash is always king. Having the luxury to spread out the payment for your expense for several years will make the businesses have more room for expansion and their other businesses plans. So loans are something that you don't need to worry about since companies won't even be able to have them if they also have bad credit as well.

[Jet Cash]

>..<

The British Crown is the ultimate owner of all of the land in Canada, Australia, the UK and a load of other countries. This makes the English Queen the ultimate owner of more land than any other dynasty in the world.

The super rich borrow money at negative interest rates, and use it to buy hard assets. They then wait for the collapse of their fiat currencies to clear their loans ( if they feel like it ).

[sunsilk]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?
what we can expecing? the property prices will go higher?

They take loans as the interest are cheaper this time and it's the strategy of the governments to make their economies alive again. They can't just do nothing while watching the economy go down.

And as for those rich people, they see this as an opportunity. Although they have the resources, they are wise enough to use others money to generate profit from them and from that profit, they'll just pay the loan with the interest.

Somehow, if the economy is going alive again expect that properties value will increase.

[mersal]

See if we are talking about Rich people, they do have a lot of maintenance and at the same time most of the times people take EMI, now these EMI in the end are expensive to pay altogether.

Therefore I do think:

Loans of property
EMI
Loans of cars
Credit card payments
Etc

All these things take a lot of toll our of a person during pandemic, even if he is rich.

How try and imagine the same for the people who are poor or middle class.?? They did get hit the hardest during this pandemic and I believe government cannot help each and everyone so we have to work hard and keep social distancing while respecting the things we must do during the pandemic.

We cannot go to work, but we can work online. Things like that would save us. We need to adapt.

We are talking about the rich people right so they are not really going to suffer a lot for automobile ad credit card EMIs, it is only burden for middle class people bur rich people too suffer due to the pandemic like decrease in their profit making from business or investment.But why they take loans instead of selling the asset is a real strategy because they are going to make money from the loan money not going to spend them on useless things.

[Broly46]

>..<

The British Crown is the ultimate owner of all of the land in Canada, Australia, the UK and a load of other countries. This makes the English Queen the ultimate owner of more land than any other dynasty in the world.

The super rich borrow money at negative interest rates, and use it to buy hard assets. They then wait for the collapse of their fiat currencies to clear their loans ( if they feel like it ).

This a interesting time we alive many investment simply don’t make money, smart money are running out of option to invest, the “smart money” here depict the high net worth individual such as WB, this smart money do not like bitcoins, WB openly express dislike on bitcoin, all his followers would do the same too, Bill Gates dislike bitcoins too, but WB calling real estate is the best performing asset for him, I think all his followers too would do the same, I think nobody with high net worth is investing any money into liquid market, many turn into hedge fund, hedge fund isn’t investing money into liquid market, the market is entirely running on bailout money, who is to blame for this mess? Real estate isn’t the risk free investment, but it’s highly illiquid and it’s difficult to know the real value from time to time, I think it’s also the reason why it’s a good investment, very illiquid very difficult to know the value but it’s open to bid the price for the real estate.

The odd thing happen that bank constantly offering money to bailout property owners, refinance on top of another refinance on top of another refinance, there is no end to it, that’s what attract the super rich, they can get bailout by investing into real estate, for the people without property they have a lot to loss since having a property is a necessity, they couldn’t enjoy the benefit of bailout offered.

[Taskford]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?
what we can expecing? the property prices will go higher?

https://www.bloomberg.com/news/articles/2020-04-09/ultra-wealthy-pull-cash-from-mansions-to-buy-beaten-down-assets

Rich people have big debts but those are good debts and mostly they take a loan to expand their business, If you think they are broke then they are not since that's how they gain capital without taking some on their pockets.

Provably you didn't done this yet and some other people really take it as bad actions made since some other think about the borrower is dumb or broke for asking some loan in the bank.

[bitbollo]

Most of people have not enough liquid asset (FIAT) to start a business, the best way is get a loan using property already own.
Having a big amount of FIAT on a bank account is worthless and can bring just expenses. For sure in a very rare cases they produce just small earnings.
Receive a loan isn't always a negative stuff, because it also work as a medium for speed up a business, and not just a negative asset to have on portfolio.

[Kasabus]

Most of people have not enough liquid asset (FIAT) to start a business, the best way is get a loan using property already own.
Having a big amount of FIAT on a bank account is worthless and can bring just expenses. For sure in a very rare cases they produce just small earnings.
Receive a loan isn't always a negative stuff, because it also work as a medium for speed up a business, and not just a negative asset to have on portfolio.

Yes. Taking loans nowadays are just very common even how rich you are. Rich people do not take loans because they don't have enough funds to sustain their necessities, but because they want to double their investments in a way that they can produce more profits too compared to a single investment. Taking loans could be a great idea to increase your assets and speed up its progress.

[BrewMaster]

Since the article is from April (!) I really don't know what's the reason for this topic... an attempt to scare the newbies?

Or to show how it is made? But this kind of strategy doesn't cater for everyone obviously. So I wouldn't go that route, or maybe I will make a loan but I know that I can fully pay it off. Those rich has a lot of leverage with their assets as collateral. And then buying cheap and selling in the future take the profits paid the loan and they still have some in their pocket, perfect strategy for them.

The rich people do afford to lose most of the assets they've used as collateral and they'll still be rich.
Normal people should not use loaned money for any kind of investments.

Indeed, that's not the path to follow. So not much use to "show how it is made" imho...

many of the rich people got rich by taking these kinds of high risk moves. but they do it with some experience and the know how of the internals of the markets they are doing it it.
in the end fiat will always dump because of its inflationary nature and there is no escaping that. so if they could get more money even through loaning and invest it in assets that can not lose their value they can make a ton of money. of course again being in the inner circle helps them a lot.

[jaysabi]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?
what we can expecing? the property prices will go higher?

They take loans as the interest are cheaper this time and it's the strategy of the governments to make their economies alive again. They can't just do nothing while watching the economy go down.

And as for those rich people, they see this as an opportunity. Although they have the resources, they are wise enough to use others money to generate profit from them and from that profit, they'll just pay the loan with the interest.

Somehow, if the economy is going alive again expect that properties value will increase.

This is why you save.  Success is where opportunity and preparedness meet.  The opportunity in this case was people panic selling assets to raise liquidity, mostly because they were recklessly overleveraged. The preparedness is having already saved to be able to take advantage of other people being forced out of the market instead of selling because they wanted to.  But the rich aren't using other people's money, they're using their own.  Leveraging your assets to borrow is still using your money.  If the enterprise goes south, you lose the asset supporting the loan.

[carter34]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?
what we can expecing? the property prices will go higher?

If taking properly to use for collateral to buy cryptocurrency means it is more useful to the buyer than the property. Recently people are seeing cryptocurrency as an asset especially bitcoin. They prefer hodling Bitcoin as a better risk.

[GeorgeJohn]

Rich people taking loans does not mean it's avenues for them to be poor, the possibility for rich person to loan,meaning that the rich has a rich mentality in order to add to his wealth because the loan is for investment when situations is not in statics equilibrium or life is not balanced to him or her.

[shield132]

Do you know that one of the major companies and leaders in a lot of industries carry a lot of debt? Insane amount of debts despite the fact that these companies are gamechangers.
Also I suggest you to check this article 5 Successful Companies That Didn't Make a Dollar for 5 Years[/rul]. In the list there are companies like Amazon, FedEx, Tesla and others.
So, yeah, rich people take loans when their money supply isn't enough for them to start a business or a thing that they want and requires much more resources. Also, when someone is rich, it doesn't automatically means that he/she owns supply of money, no, this can be assets and stocks that they don't want to sell too.

[ultrloa]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?
what we can expecing? the property prices will go higher?

If taking properly to use for collateral to buy cryptocurrency means it is more useful to the buyer than the property. Recently people are seeing cryptocurrency as an asset especially bitcoin. They prefer hodling Bitcoin as a better risk.

Sometimes they don't really want to sell their property and want to get a capital for their trade or other used that's why they try to lend some money to used in crypto if they choose to do this, real estate value increase over the year so I think the owner doesn't want to sell since he know the potential and just want to lend to earn since if he choose this option he can possibly get the two options profit generating for his self.

[Broly46]

Since the article is from April (!) I really don't know what's the reason for this topic... an attempt to scare the newbies?

Or to show how it is made? But this kind of strategy doesn't cater for everyone obviously. So I wouldn't go that route, or maybe I will make a loan but I know that I can fully pay it off. Those rich has a lot of leverage with their assets as collateral. And then buying cheap and selling in the future take the profits paid the loan and they still have some in their pocket, perfect strategy for them.

The rich people do afford to lose most of the assets they've used as collateral and they'll still be rich.
Normal people should not use loaned money for any kind of investments.

Indeed, that's not the path to follow. So not much use to "show how it is made" imho...

many of the rich people got rich by taking these kinds of high risk moves. but they do it with some experience and the know how of the internals of the markets they are doing it it.
in the end fiat will always dump because of its inflationary nature and there is no escaping that. so if they could get more money even through loaning and invest it in assets that can not lose their value they can make a ton of money. of course again being in the inner circle helps them a lot.

No way it’s risky, real estate has always been viewed as a solid investment for the ultra rich, every ultra rich love to invest to real estate, it’s not uncommon many people think property is high risk, these people are usually rent property their entire life, they love to spread fud, and bearish on market crash, world wars will wipe out everything, business is doing bad and so on, by far all of them are proven wrong again and again, there is nothing wrong about them, because everybody hate taking loan from the bank, nobody want to have any loan, they want to buy anything that they can pay with just cash, yup they intend to buy real estate with dirt cheap price that they can pay with cash too, nobody in their right mind will want to make such an obvious loss making decision, they’re often looking at -50-70% below market rate property, which is some ridiculous rate.

[Rengga Jati]

rich people around the world taking loans?

Why do we have to think about other people in such detail? So you have to know what they owe?

Well, whatever it is, they have a reason. And I believe, this rich man owes a debt not to spend time alone, but to do something, save something, or develop something.

Well, it's better if we focus on ourselves. can we go into debt and pay it? If not, it's better to stay away from debt because this will only make you miserable.

[JuSayCo]

Its just normal for the rich people to take some loans and really some of them have huge loans. This loans will be made to add more capital in their respected businesses. And this doesn't mean that huge loans will make their status in the society low. They probably know all the consequences and they were good in handling investments and other businesses, though we must admit that during this strange time, we are all affected with this pandemic and there is no exemption in terms of finances. Rich and poor are both affected and in order to get back into business, its really necessary to some businessmen to take some loans to cope up and add some health features as per compliance with the government's safety protocol in operating business.

[crwth]

Just like what The Pharmacist said, they invest it in another asset. They are letting their money work for it. And banks also need people to take loans because how will they earn more with what they have? I know they don't want to print out more money and to flood the market as well. To make it look more comfortable for you, I will list things below that could help you.

• Repay other debts
• Invest in businesses
• Cheap Assets caused by the Pandemic

And in the article you showed here, there's an interesting quote as well.

"We have more options than you would expect at this stage of the cycle."

The rich are taking this to their advantage to increase their value further and have more properties, I guess. I think you should comprehend the article more and see that you could get all the answers from there. If you think about it, they are just making more money to buy "discounted" assets caused by the pandemic by borrowing money. Let the money work for you as they say.

[Darker45]

Whether a person is rich or not does not determine whether a person will take a loan or not. Ordinary men take loans. Billionaires take loans. But the ordinary man may take a loan to build a house, pay some bills, start a little business, and so on. Wealthy men take loans to further grow their worth. I haven't been a rich man myself but I don't think wealthy people are leaving billions in banks. That's probably unwise of them, letting their money sleep with very little return.

Somehow we're like them. If we need money and we have BTC, which option should we take: sell the BTC and use the money or use the BTC as collateral for a loan and then slowly repay the loan and get back the BTC? I prefer the latter knowing that it's value is ever rising. That must be the same line of thinking with rich people preferring to keep their properties and use them instead as collaterals if they need money rather then sell them.

[sunsilk]

They take loans as the interest are cheaper this time and it's the strategy of the governments to make their economies alive again. They can't just do nothing while watching the economy go down.

And as for those rich people, they see this as an opportunity. Although they have the resources, they are wise enough to use others money to generate profit from them and from that profit, they'll just pay the loan with the interest.

Somehow, if the economy is going alive again expect that properties value will increase.

This is why you save.  Success is where opportunity and preparedness meet.  The opportunity in this case was people panic selling assets to raise liquidity, mostly because they were recklessly overleveraged. The preparedness is having already saved to be able to take advantage of other people being forced out of the market instead of selling because they wanted to.  But the rich aren't using other people's money, they're using their own.  Leveraging your assets to borrow is still using your money.  If the enterprise goes south, you lose the asset supporting the loan.

They are rich people and for sure they have savings and as much as amount that we can think of. The thing that they do is they use others money through loaning and it's like adding more profitability power on their side but without using or spending their own resource.

This is a very common thing for the rich folks. What do I mean by using others money is the loaning, it's others money and they collateral as a prove that they can pay it or if ever they default, they have it to pay for that loan. But the process and logic lies with that.

[el kaka22]

Doesn't it make sense that when there are so many low prices on basically everything and the whole world is in big economical trouble, you could take out a huge loan and simply buy out companies and buy huge shares and basically all around invest when there is an economical crisis due to pandemic and everything is tanked, so that when things recover and get better those rich people who took out loans would get richer as well.

If I could get in I would too but we are not rich, we are not going to get that much loan from banks to begin with and if I take out a loan to take advantage of this situation I would have to pay that loan back to bank which I do not have the income for, rich people have huge incomes already and with their investment they would have even more so they can do this.

[bitbollo]

We live in a capitalistic society, where money can produce other money, we forget that receive a loans is guaranteed only from collateral.
Isn't just a forum rule but also real economy need a collateral, and a proof to repay the loan with other incomes.

It is an extreme reality in the world that those who have money, banks or any institution only lend to them.As such I think it is an extreme reality.However, those who are getting loans are getting a chance to turn around again.But we can't. This is unfortunate for us.

[abhiseshakana]

Doesn't it make sense that when there are so many low prices on basically everything and the whole world is in big economical trouble, you could take out a huge loan and simply buy out companies and buy huge shares and basically all around invest when there is an economical crisis due to pandemic and everything is tanked, so that when things recover and get better those rich people who took out loans would get richer as well.

If I could get in I would too but we are not rich, we are not going to get that much loan from banks to begin with and if I take out a loan to take advantage of this situation I would have to pay that loan back to bank which I do not have the income for, rich people have huge incomes already and with their investment they would have even more so they can do this.

The answer is simple because they have collateral for their loans, and they need these loans to fund their large businesses which were very expansive in nature, controlling mining, property, plantations, and export trade commodities. The conglomerates take on debt recklessly, even though their projects have proved unsuccessful in these sectors. However, banks continue to disburse credit with feasibility studies which are possibly fake. Not a few of the large corporations commit tax crimes, tax evasion, and save their profits abroad. These big conglomerates seem to want to repeat history once again in times of crisis, namely the success of moving their debts into state debt by influencing government policies to sign bailout policies.

The real bank is a capitalist system ridden by an oligarchy at the national level and globalists at the multilateral level. Even banks have a system that wins over the capitalist system. Only that has a warranty can go into debt. So the small people, their money is collected in banks but usually, they will have difficulty when borrowing money from the bank because only a few people have collateral, namely those who are rich who are close to power or who play with the oligarchy.

[MCobian]

It seems rich people have borrowed money from banks for a long time, not because of COVID-19 then they decided to borrow money.
They do this usually for investing in real estate, usually they buy a house not to live in, but for rent or resell at a high price. Because
rich people do not like to spend large amounts of money at once to buy a house as an investment, so they chose to borrow money from
the bank.

[plvbob0070]

Rich people have the biggest debt because they are capable of paying it. They take a loan to have more assets to run on their business to be richer which means they also pay their debt and take another loan, and that's how they work so there's nothing new about it actually. It's different from how normal people take a loan because they usually just use it for daily expenses that's why they have a hard time paying it, unlike rich business people who know how to circulate their more to earn more.

[Febo]

Rich people super rich are taking loans now why? what it means ?

We are in debt economy. Countries are indebted, why would not be individuals?  When you go buy car they almost dont want to sell you car if you want to pay it immediately. They want to offer you one of their great zero interest loans. That is how it is and that is how people learned and now live by it. Times when people knew that debts enslave them are long gone and forgotten.

[beerlover]

It makes sense to get stuff when they are cheap but it also makes sense that if you have a loan you have to pay for it, so you might get richer in the end of this idea but also how are you going to handle all the payments right now? No one has income to pay loans that could make you rich, if you are taking a loan with the sole purpose of getting rich, buying ton of stocks and all, that loan has to be huge, and if the loan is huge that means payments are huge as well and if you even have enough income to pay for it, that means you are losing big amount of income as well.

So, I understand that it could be done, but I also feel like it is a bit dangerous, it creates this trouble where you are not going to be really easy for a while until the debt is fully paid back.

[hahay]

Basically rich people always have debt or loans with their credit cards, but regardless of these problems I don't think it is surprising if that happens, because it's like a cycle where they have their strategy for a specific purpose. Indeed, ordinary people will be surprised when rich people make loans, but for me it is something that usually happens, because super rich people also don't mean they don't have problems in their finances, but if the guarantee is property I personally am not sure that these items will also rise high in the future, or maybe they just need to make another profit through the guarantee or something.

[romero121]

Rather than keeping their assets idle, they use it as collateral and with the loans go for further investment. We can't expect the investment to give assured return, if the plans go right and profit then one can settle the loans and get back the collateral making his portfolio more some assets out of the investment. Same time if the investment ends losing, he's supposed to sell the collateral and settle the loans.

Money making is all about the way it's been taken forward. If lucky we'll be earning big even with small investment, and if there is no luck even a big investment goes to zero in a day.

[FanEagle]

I don’t think anyone would prefer to sell their property because of money, they would prefer that they take loan and run their business and maybe use the property as collateral because they know for sure that they are going to be paying that money back and getting back their property.

And I think another you have to understand is that rich people don’t take out millions of loans just to invest it in unnecessary things, rather they take those loans to invest in assets that will generate more money in return. At last when they pay their debt they will still have extra money left from the profit they have gotten from the investment. They calculate everything before time.

[The cure]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

[MWesterweele]

rich people around the world taking loans?

Why do we have to think about other people in such detail? So you have to know what they owe?

Well, whatever it is, they have a reason. And I believe, this rich man owes a debt not to spend time alone, but to do something, save something, or develop something.

Well, it's better if we focus on ourselves. can we go into debt and pay it? If not, it's better to stay away from debt because this will only make you miserable.

Each and everyone has their own issues in life, and at the same time yes even the richest man alive on earth i bet has owe a debt but not for something that they can spend for liesure but they owe a debt for a capital on their additional business or investments. And as what happening on our world today, the economic crisis that each country has faced due to pandemic bankcrupt of a business was a timely problem so it is not impossible that even the richest peson may have come to owe a debt.

[lumeire]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

It is mostly because of the fact that they have more beautiful deals under their sleeves and whenever they have somewhat need for more cash they take a loan because they are sure that they will repay the loan along with the interest on the borrowed money and still be making a lot of profit from the loan that they took, so there isn't a lot of risk involved in these loans for them as they know how to handle these kind of risks in day to day life.

[worldofcoins]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

It is mostly because of the fact that they have more beautiful deals under their sleeves and whenever they have somewhat need for more cash they take a loan because they are sure that they will repay the loan along with the interest on the borrowed money and still be making a lot of profit from the loan that they took, so there isn't a lot of risk involved in these loans for them as they know how to handle these kind of risks in day to day life.

Well, only rich peoples can take loans.
Since they have properties and cars that they can use to repay a loan, ever heard poor people take a big loan ?.
No, because poor peoples have nothing to collateral. Cryptocurrencies can never be used as collateral since they are still not familiar with anyone and people still think its a scam.
Maybe in the future, when every people recognize the bitcoin, they'll use it as an asset or collateral but not for now.

[Darkelf11]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

Loaning can be another away of using your money to earn a lot of money. You can use the money you loan in a business or you can buy your own stocks and shares. Wealthy people are being strategic on how they will manage the money they borrowed. Don't just spend money, think of making more money out of the money you had borrowed.

[Akiko]

Well, only rich peoples can take loans.
Since they have properties and cars that they can use to repay a loan, ever heard poor people take a big loan ?.
No, because poor peoples have nothing to collateral. Cryptocurrencies can never be used as collateral since they are still not familiar with anyone and people still think its a scam.
Maybe in the future, when every people recognize the bitcoin, they'll use it as an asset or collateral but not for now.

No, even middle-class person can also take a loan but don't expect that you will get a huge loan because your income is limited .they can only give you a loan base in your income and capability to pay. Unlike rich people that they can use all of their asset as collateral so they can easily take a loan same thing with poor people if they have a collateral for the loan he want they can have it .

[justdimin]

Well, only rich peoples can take loans.
Since they have properties and cars that they can use to repay a loan, ever heard poor people take a big loan ?.
No, because poor peoples have nothing to collateral. Cryptocurrencies can never be used as collateral since they are still not familiar with anyone and people still think its a scam.
Maybe in the future, when every people recognize the bitcoin, they'll use it as an asset or collateral but not for now.

No, even middle-class person can also take a loan but don't expect that you will get a huge loan because your income is limited .they can only give you a loan base in your income and capability to pay. Unlike rich people that they can use all of their asset as collateral so they can easily take a loan same thing with poor people if they have a collateral for the loan he want they can have it .

Loan amount can also be evaluated based on your previous years income because that grants you higher loans and better credit score is another factor that helps, so if you have in past taken loans and paid back on time you are always welcomed by banks for taking loans. Actually even banks are providing loans these days because everyone knows how past couple of months have been and one who has better credit and track record gets loan easily.

Personally I believe one should never take loans if they can sell off some assets because I am someone who had loads of loan on head at tone time and it is never easy to pay back plus the interest If you are taking loan just to invest in your business which is fine but if by any chance you are taking loans for covering daily expenses then you are just digging a bigger hole.

[Emitdama]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

Loaning can be another away of using your money to earn a lot of money. You can use the money you loan in a business or you can buy your own stocks and shares. Wealthy people are being strategic on how they will manage the money they borrowed. Don't just spend money, think of making more money out of the money you had borrowed.

Exactly and a lot of people believe that borrowing money is a negative action but actually if you have a solid and robust plan about how to invest the borrowed money into something that brings higher returns than the interest, then it is always a wise and excellent decision to take loan. All the big companies and industries take loan and that's because they scale with that money and the returns are even bigger for them.

There might be rich people taking loans because now days after pandemic because there has been a reset for everyone and people need some money support to start their industries, no matter how rich someone is but having extra liquidity in funds never hurts.

[Kong Hey Pakboy]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

Loaning can be another away of using your money to earn a lot of money. You can use the money you loan in a business or you can buy your own stocks and shares. Wealthy people are being strategic on how they will manage the money they borrowed. Don't just spend money, think of making more money out of the money you had borrowed.

Exactly and a lot of people believe that borrowing money is a negative action but actually if you have a solid and robust plan about how to invest the borrowed money into something that brings higher returns than the interest, then it is always a wise and excellent decision to take loan. All the big companies and industries take loan and that's because they scale with that money and the returns are even bigger for them.

There might be rich people taking loans because now days after pandemic because there has been a reset for everyone and people need some money support to start their industries, no matter how rich someone is but having extra liquidity in funds never hurts.

Rich people and business owners are taking loans in the middle of the pandemic because their sales went down. So they want to recover all of their losses from the past few months. Borrowing money in banks has low-interest rates, so they could easily handle their business and start making good profits for them to be able to pay back their loans.

[shoreno]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

Loaning can be another away of using your money to earn a lot of money. You can use the money you loan in a business or you can buy your own stocks and shares. Wealthy people are being strategic on how they will manage the money they borrowed. Don't just spend money, think of making more money out of the money you had borrowed.

Exactly and a lot of people believe that borrowing money is a negative action but actually if you have a solid and robust plan about how to invest the borrowed money into something that brings higher returns than the interest, then it is always a wise and excellent decision to take loan. All the big companies and industries take loan and that's because they scale with that money and the returns are even bigger for them.

There might be rich people taking loans because now days after pandemic because there has been a reset for everyone and people need some money support to start their industries, no matter how rich someone is but having extra liquidity in funds never hurts.

Rich people and business owners are taking loans in the middle of the pandemic because their sales went down. So they want to recover all of their losses from the past few months. Borrowing money in banks has low-interest rates, so they could easily handle their business and start making good profits for them to be able to pay back their loans.

we are still in pandemic and business are still in critical conditions so i wont advice them to loan because the loans will be useless and they will end up on a great loss because they need to repay the loan with interest . banks do have a high interest but depends on the brand of bank maybe some will offer less interest with some conditions . i know rich people are always taking a loan and its not because of the covid but some take loans because of this reason  but poor people are the ones that are active now on loaning because they are the ones that are affected .

[Findingnemo]

As a result of pandemic banks were forced to give loans for very less interest rates so rich people are using this opportunity and take loans to invest on something, they know how to make money so its just a free gift for them.

[jaysabi]

many of the rich people got rich by taking these kinds of high risk moves. but they do it with some experience and the know how of the internals of the markets they are doing it it.
in the end fiat will always dump because of its inflationary nature and there is no escaping that. so if they could get more money even through loaning and invest it in assets that can not lose their value they can make a ton of money. of course again being in the inner circle helps them a lot.

No way it’s risky, real estate has always been viewed as a solid investment for the ultra rich, every ultra rich love to invest to real estate, it’s not uncommon many people think property is high risk, these people are usually rent property their entire life, they love to spread fud, and bearish on market crash, world wars will wipe out everything, business is doing bad and so on, by far all of them are proven wrong again and again, there is nothing wrong about them, because everybody hate taking loan from the bank, nobody want to have any loan, they want to buy anything that they can pay with just cash, yup they intend to buy real estate with dirt cheap price that they can pay with cash too, nobody in their right mind will want to make such an obvious loss making decision, they’re often looking at -50-70% below market rate property, which is some ridiculous rate.

Any leverage is risk. Look at Donald Trump. Despite being a "billionaire" on paper, he's leveraged to his eyes in for businesses that are just burning cash. He'll be bankrupt (again) within 4 years when the hundreds of millions of dollars in loans come due. No one is going to continue to lend to him now that we've got a whiff of the financials he's been hiding and understand why. Hell, most of the banks already stopped lending to him. That's why he cozies up to dictators, it's pretty much the only avenue he has left to access any potential loans. Trump's leverage will be his downfall because he's a horrible business man.

[cryptoboss2020]

many of the rich people got rich by taking these kinds of high risk moves. but they do it with some experience and the know how of the internals of the markets they are doing it it.
in the end fiat will always dump because of its inflationary nature and there is no escaping that. so if they could get more money even through loaning and invest it in assets that can not lose their value they can make a ton of money. of course again being in the inner circle helps them a lot.

No way it’s risky, real estate has always been viewed as a solid investment for the ultra rich, every ultra rich love to invest to real estate, it’s not uncommon many people think property is high risk, these people are usually rent property their entire life, they love to spread fud, and bearish on market crash, world wars will wipe out everything, business is doing bad and so on, by far all of them are proven wrong again and again, there is nothing wrong about them, because everybody hate taking loan from the bank, nobody want to have any loan, they want to buy anything that they can pay with just cash, yup they intend to buy real estate with dirt cheap price that they can pay with cash too, nobody in their right mind will want to make such an obvious loss making decision, they’re often looking at -50-70% below market rate property, which is some ridiculous rate.

Any leverage is risk. Look at Donald Trump. Despite being a "billionaire" on paper, he's leveraged to his eyes in for businesses that are just burning cash. He'll be bankrupt (again) within 4 years when the hundreds of millions of dollars in loans come due. No one is going to continue to lend to him now that we've got a whiff of the financials he's been hiding and understand why. Hell, most of the banks already stopped lending to him. That's why he cozies up to dictators, it's pretty much the only avenue he has left to access any potential loans. Trump's leverage will be his downfall because he's a horrible business man.

trump is funny guy

[DeadCoin]

As a result of pandemic banks were forced to give loans for very less interest rates so rich people are using this opportunity and take loans to invest on something, they know how to make money so its just a free gift for them.

 In my own analysis, I think taking loans is good to used for business right" perhaps, sometimes there is really someone who does not care about which is there is nothing important than money even if when money is overflowing.  Basically it is probably that assuming a large amount of loans is just a common for the rich people in the world of crypto even it is a risky as well as it is for good investment during this time  ,totally, it is also suitable to anyone who join with collateral.

[Sapphire915]

I believe its not new for rich people to take some loans. They often do this everytime they are going to put up some large businesses and they needed more capital. However, nowadays, loans is the only hope for us all to get back into place as we are all struggling to restore the businesses, jobs and our daily undertakings. Loans were created not just for the poor, but to all individuals who has the capability of giving back the payment in due time. In this pandemic time, some rich people didnt receive any aid or financial assistance from the Government, because of their status in the community though they are also affected just like anybody else living in this world and being hit by this covid-19.

[Mauser]

I believe its not new for rich people to take some loans. They often do this everytime they are going to put up some large businesses and they needed more capital. However, nowadays, loans is the only hope for us all to get back into place as we are all struggling to restore the businesses, jobs and our daily undertakings. Loans were created not just for the poor, but to all individuals who has the capability of giving back the payment in due time. In this pandemic time, some rich people didnt receive any aid or financial assistance from the Government, because of their status in the community though they are also affected just like anybody else living in this world and being hit by this covid-19.

First of all we need to realise that there is still plenty of money being issued around the world. Interest rates are still close to their lowest levels and governments are trying to increase inflation with printing more money. So the cost to take out loans is very low right now compared to 20 years ago. And in the end it just depends on what you are doing with the money. If you manage to get a higher return on your funds than the borrowing cost, you make profit. On my opinion the rich people are just leveraging up, taking cheap money and invest it in their profitable business to  make even more money.

[EdenHazard]

As a result of pandemic banks were forced to give loans for very less interest rates so rich people are using this opportunity and take loans to invest on something, they know how to make money so its just a free gift for them.

+1
The other reasons is that the money held in the banks need to be in circulation especially during these crazy tough times where recession happened almost in every single country around the world, so yeah sometimes the banks themselves more to force us to take loan with very interesting offers.. they need to bring the money out and those hyper businessman won't just stand there seeing the big opportunity to make more money passes.

I still think that till this date , the uncertainty will last little longer and the opportunity to taking loan and make more money out of it through the financial market uncertainty includes cryptocurrency market which looks sexier than ever.

[Xembin]

Business is all about risk. That's why Bible said poor will always be among the richest. Poor people are afraid to collect loan to improve their businesses and start making money from the business than to be scared of loan which rich men are using to grow their businesses in the country.
I think rich men are not okay with their businesses because they always want to do more in their business that is why most of them want to collect loan to grow their businesses.

[SquallLeonhart]

Trump situation is different, dude says he owns assets that worths over a billion, and he has over 400 million dollars in debt at the same time, so his justification is the fact that his assets (real estate) could generate enough income to make more money for him than the debt he has to pay.

Obviously almost all presidents leaves their jobs to someone else before they get inaugurated so that they do nothing that could help his own business, this dude however stayed at trump places all the time and made all of his security team and advisors and basically everyone who wanted to kiss his ass stay at his places to pay his debt back and make his real estate worth more. So dude is not rich, he is just a con man who claims he is rich, but until his real estates are sold, all the prices he lists are speculations.

[Findingnemo]

As a result of pandemic banks were forced to give loans for very less interest rates so rich people are using this opportunity and take loans to invest on something, they know how to make money so its just a free gift for them.

 In my own analysis, I think taking loans is good to used for business right" perhaps, sometimes there is really someone who does not care about which is there is nothing important than money even if when money is overflowing.  Basically it is probably that assuming a large amount of loans is just a common for the rich people in the world of crypto even it is a risky as well as it is for good investment during this time  ,totally, it is also suitable to anyone who join with collateral.

For business purposes it is good time to take loans but what kind of business really matters now because priority of consumers changed due to the economic and financial imbalance in their life so choose something which people needs more than anything for now.

[Rodeo02]

As a result of pandemic banks were forced to give loans for very less interest rates so rich people are using this opportunity and take loans to invest on something, they know how to make money so its just a free gift for them.

 In my own analysis, I think taking loans is good to used for business right" perhaps, sometimes there is really someone who does not care about which is there is nothing important than money even if when money is overflowing.  Basically it is probably that assuming a large amount of loans is just a common for the rich people in the world of crypto even it is a risky as well as it is for good investment during this time  ,totally, it is also suitable to anyone who join with collateral.

For business purposes it is good time to take loans but what kind of business really matters now because priority of consumers changed due to the economic and financial imbalance in their life so choose something which people needs more than anything for now.

And make sure that the business you will open can survive with this generation which is much more advance compare to normal business we have before pandemic came. Or else you will be in depth which is harder to recover if you failed with your business because we are just starting our business from scratch  .but its a good opportunity for every one because no one is ahead and behind and everyone is equal. Its only depend how much the capital you need to use to start your business .

[davinchi]

Do Honestly when you “say” your assets worth billions of dollars that is kind of true but I just believe that he worths that much. Look at michael bloomberg, they are basically enemies of each other because they basically do all the same things, they are both from New York and they are both real estate giants and look how much bloombergs money is open into the world. The difference is bloomberg made his money from software for wall street and not buildings but got into tons of buildings later on as well. If Trump  worths ton of money he should be able to prove that too right? He can’t prove because he doesn’t worth that much money at all.

[CASTIEL05]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?
what we can expecing? the property prices will go higher?

https://www.bloomberg.com/news/articles/2020-04-09/ultra-wealthy-pull-cash-from-mansions-to-buy-beaten-down-assets

We don`t care anymore to them since we can loan also without their permissions. It is just normal to see rich people taking loans and make their property as collaterals. We don`t what they will be done to their loans and how could they paid it. But as long as the money that they will rapay to the loans are not coming from illegals. It is their strategy specially nowadays that the economy is in the recession. To prevent, the shutdowns of a company you have to risk in loans. Made it the best to delay the possible shutdown of a company and paid it after the pandemic.

[Ayiranorea]

Rich and super rich are made out of Businesses. Once after the well establishment of the business there'll be regular revenue. To keep up the revenue and to multiply the net worth of the business they go for loans. The entire loan amount won't be taken for the business upliftment, around 30% - 40% will be used for business while the rest gets invested. This is how the loans were used by the rich and super rich.

[Salauddin1994]

The reason why rich people take loans is because many business people including the government are affected by the epidemic and they take loans to increase their business and investment. The government is giving low interest loans to banks to improve the economy of their country so every business is taking loans to make a profit besides rich people are trying to take loans from banks by emphasizing on increasing revenue collection this year to alleviate the financial crisis due to low revenue collection.

[worldofcoins]

Rich and super rich are made out of Businesses. Once after the well establishment of the business there'll be regular revenue. To keep up the revenue and to multiply the net worth of the business they go for loans. The entire loan amount won't be taken for the business upliftment, around 30% - 40% will be used for business while the rest gets invested. This is how the loans were used by the rich and super rich.

Rich people can afford the loans since they already ha huge properties and money for collateral.
Even they lose their loans, and they still can bear it.
There's nothing special loan for rich people because many organizations realize they can restore high cash, and there will be no postponement of refunding.
The government should make a move against it and make a framework for helpless people, groups to go into business and make their life simple.

[jaysabi]

The reason why rich people take loans is because many business people including the government are affected by the epidemic and they take loans to increase their business and investment. The government is giving low interest loans to banks to improve the economy of their country so every business is taking loans to make a profit besides rich people are trying to take loans from banks by emphasizing on increasing revenue collection this year to alleviate the financial crisis due to low revenue collection.

Low interest rate loans are the biggest factor in loan activity. It's been over a decade since the interest rates have not been artificially super low. The economy is super leveraged because money has been essentially free to borrow (compared to historical norms).

[Fortify]

Unfortunately in times like this the rich are able to get much richer. They already have plenty of assets, so are able to use free cash flow or borrow money and buy while asset prices are depressed. While everyone else is getting rejected for bank loans, the richest are courted by financial institutions because they are the easiest type of customer. Stocks plunge during a crisis like this, but long term they will recover and are basically selling at bargain prices right now.

[goaldigger]

The reason why rich people take loans is because many business people including the government are affected by the epidemic and they take loans to increase their business and investment. The government is giving low interest loans to banks to improve the economy of their country so every business is taking loans to make a profit besides rich people are trying to take loans from banks by emphasizing on increasing revenue collection this year to alleviate the financial crisis due to low revenue collection.

Low interest rate loans are the biggest factor in loan activity. It's been over a decade since the interest rates have not been artificially super low. The economy is super leveraged because money has been essentially free to borrow (compared to historical norms).

Many banks offer a low interest rates for the loans and even our own central bank mandated the banks to make the interest lower so many can avail the loans during this pandemic, and many are taking advantage of this so they can survive and help the business to keep in operation despite of what happened.

Most of the Rich businessman already know where to put their money, so I’m sure they borrow funds so they can diversify and still make profit, loans are not bad at all and those collateral for sure they wont allow banks to get that easily.

[J.Amador]

Because in our situation what are we facing right now that's why rich people taking loans because I think their company is now bankrupt cause of the pandemic many company are closing and many people loss their job that's the main reason why rich are taking loans

[carter34]

Rich and super rich are made out of Businesses. Once after the well establishment of the business there'll be regular revenue. To keep up the revenue and to multiply the net worth of the business they go for loans. The entire loan amount won't be taken for the business upliftment, around 30% - 40% will be used for business while the rest gets invested. This is how the loans were used by the rich and super rich.

Also that they have seen that it is a better time now to invest than to wait because the corona pandemic has made eyes to go into cryptocurrency, so they can take loan to buy it cheap and expect bigger return in the future. They play the wise game with the knowledge of business they have. But some people that are poor are also doing cryptocurrency investment.

[coolcoinz]

Because in our situation what are we facing right now that's why rich people taking loans because I think their company is now bankrupt cause of the pandemic many company are closing and many people loss their job that's the main reason why rich are taking loans

This is not the only reason. Sure, if you own a restaurant or a cinema that got shut down by the government you have to get money from somewhere, so you take a loan, but if we're talking about very rich people, most of them have the resources to pay the bills for a few months. Taking a loan sometimes mean betting on the crisis to come. In a crisis the value of fiat money will drop and you can also expect interest rates to be lower, while physical goods will not go down in value.

[Casdinyard]

Because in our situation what are we facing right now that's why rich people taking loans because I think their company is now bankrupt cause of the pandemic many company are closing and many people loss their job that's the main reason why rich are taking loans

There are instances related in what you have mentioned but also, there are instances wherein rich people are making loans in order to be prepare or to have something to be used in order to generate profit. In what way? During this pandemic, many people have engaged to businesses involving needs related to protection from the virus. Many people invested because they saw the opportunity or earning huge profit from the situation. Some of them are hoarding things and eventually selling for a higher market price. It is cruel to think of such thing despite of the pandemic but that is really effective if your goal is to just be rich but ofcourse, it will kill your sympathy towards other in some cases.

[Yatsan]

Why is being an issue and becoming questionable? Rich people are also like ordinary type of people taking up loans for a purpose and that is maybe to start up funding essential things that he find to make him more profitable and he just maybe not having enough money so to sustain and fill out such flaws, taking up loans is their way to resolve the problem. Actually taking up loans are not new at all for businesses are doing it also borrowing money from banks to fund the business so they can make use of it as a capital or for maintenance purposes of the business branch. Loaning money is just another strategic way to start up a business so rich people can also do it like ordinary people do. There is no exception on taking up loans as long as you have the capacity to pay for it.

[Shasha80]

Many rich people borrow money from banks for the purpose of turning it into assets, so that it can avoid inflation and can be used to
generate more money. Because the rich think money is a tool, so money should be used to work, not we work to earn money. So the
rich to lend money are not necessarily affected by the pandemic, they may borrow money for business purposes.

[maydna]

Many rich people borrow money from banks for the purpose of turning it into assets, so that it can avoid inflation and can be used to
generate more money. Because the rich think money is a tool, so money should be used to work, not we work to earn money. So the
rich to lend money are not necessarily affected by the pandemic, they may borrow money for business purposes.

The rich people can pay the loan to the banks, but we don't have to follow them to invest or grow our business if we find it difficult to pay the money. Perhaps, rich people want to diversify or grow their business, so they need more money to prepare everything. The rich people know how to use the money to make more money, so they have the courage to borrow money from banks. Besides that, rich people usually already analyze how much they need the money and what they will use to work as their plan.

[Mauser]

Why is being an issue and becoming questionable? Rich people are also like ordinary type of people taking up loans for a purpose and that is maybe to start up funding essential things that he find to make him more profitable and he just maybe not having enough money so to sustain and fill out such flaws, taking up loans is their way to resolve the problem. Actually taking up loans are not new at all for businesses are doing it also borrowing money from banks to fund the business so they can make use of it as a capital or for maintenance purposes of the business branch. Loaning money is just another strategic way to start up a business so rich people can also do it like ordinary people do. There is no exception on taking up loans as long as you have the capacity to pay for it.

I think issue here is that people want to copy what rich people are doing. They probably think that if they do the same things rich people are doing than they will become rich themselves. The problem here is that I can't be compared that easily. The super rich people usually own large parts of companies and use their money differently to the average man. The usual borrower from a bank uses the funds to buy a house or a new car, whereas the super rich use the loans to invest.

[KnightElite]

For me there is misconception in our society where a lot of people debt is bad but for rich people it is opportunity especially for those people who have high financial intelligence wherein they can make money from debt. I know a lot of real estate investors wherein they keep taking loans from banks and then they keep buying properties like Donald Trump and Robert Kiyosaki. We should change our perception when it comes to debt because we can take loans and we can use it as capital in order to gain opportunities where in we can make profit from it.

[Stavri]

If i had a lot cash, i wouldn't spend them for something that would not bring me profit. (Except house and car) And i would prefer to take loans and pay periodically if i have a great deal from a bank. So i would be able to use the cash for something really profitable.

[iv4n]

"ultra-wealthy-pull-cash-from-mansions-to-buy-beaten-down-assets" Isn't this an answer on question from headline, they don't wish to spend their own money, they are taking loans for expending their empires! I would do the same, keep your money safe, take a loan for buying more and then return that loan slowly! As time is passing and when things get back to normal they will harvest the profit, in a year or 10 years it's not important, they have time (and money) to wait for that! It's how rich people get richer!

[Blue MoonFlower]

As far as I know, the richer the person, the higher the debts/loans are. And loans for them are just normal even back with the regular/normal time. They used to get loans to improve their businesses and much more needed loans now in pandemic time where everyone is affected, neither rich or poor. And its just an advantage for the rich and business owner individuals to get loans easily because of their status and reputations.