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Author Topic: This why wall street are rich and you are poor  (Read 902 times)
Voxo2222 (OP)
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December 13, 2021, 04:49:49 PM
Merited by JayJuanGee (1)
 #1

They borrow money to buy assets before bull run
They use borrowed money to make more money.
If u dont learn how to use DEbt to create wealth then u stay poor all ur life.

U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.

If anyone start doing this no profit for wall street wealthy guys anymore thats how powerful is investing money what u borrowed.
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December 13, 2021, 05:02:24 PM
 #2

Getting loan for investment is not always the best investment idea. Yes you can be lucky to profit in it but if you are unlucky then you blame and regret because you are going to pay back even from no where. Cryptocurrency is very risky but lucrative however you can't trust it to get a loan for investing in it. People succeed in it but not all the time, if you miss the buying and selling times then it will stay as loses for you. But it is better borrowing to buy landed property because lands always appreciate in value.

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December 13, 2021, 05:08:21 PM
Merited by JayJuanGee (1)
 #3

Getting loan for investment is not always the best investment idea. Yes you can be lucky to profit in it but if you are unlucky then you blame and regret because you are going to pay back even from no where. Cryptocurrency is very risky but lucrative however you can't trust it to get a loan for investing in it. People succeed in it but not all the time, if you miss the buying and selling times then it will stay as loses for you. But it is better borrowing to buy landed property because lands always appreciate in value.

Wealthy money-savvy people take loans with their equity as collateral all the time. It's mostly a bad idea especially for the inexperienced, but it's a damn great tool if you know what you're doing; especially today where bank loans are like more or less 2%. You just need to smartly allocate your loaned money correctly.

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December 13, 2021, 05:11:45 PM
 #4

Not all wall street firms end up success, many were bankrupt, but you won't hear the bankrupt story. The higher the leverage, the higher the bankruptcy risk. And for sure, real estate business has the highest leverage across industries IIRC. What I want to say is, you don't always need leverage. You can be wealthy from side hustle without borrowing any money. The key is reinvesting your excess income, not from debt.

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December 13, 2021, 08:26:37 PM
 #5

In Cryptocurrency I don't really believe borrowing money to invest is really a nice idea, you don't have to trust any project anything can happen at anytime that's why you shouldn't borrow money and even if you are investing your own money you should always invest any amount you can afford to lose, What happen when you lose the amount which you borrow, what if you borrow money to invest and you are waiting for the bull run and when it's time for repayment of your loan but your coin is still down or you are still at lost how will you pay back.

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TheNineClub
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December 13, 2021, 08:31:50 PM
 #6

Why would there be no profit for wealthy guys? It's not like wall street investors stop investing because a bunch of n00bs start doing the same things they do. I mean, look at Game Stop. Did it do jack shit to wall street? No it did not, nothing changes. And also, they have much more funds to throw around than we will ever have.

Gozie51
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December 13, 2021, 09:11:44 PM
 #7

Getting loan for investment is not always the best investment idea. Yes you can be lucky to profit in it but if you are unlucky then you blame and regret because you are going to pay back even from no where. Cryptocurrency is very risky but lucrative however you can't trust it to get a loan for investing in it. People succeed in it but not all the time, if you miss the buying and selling times then it will stay as loses for you. But it is better borrowing to buy landed property because lands always appreciate in value.

Wealthy money-savvy people take loans with their equity as collateral all the time. It's mostly a bad idea especially for the inexperienced, but it's a damn great tool if you know what you're doing; especially today where bank loans are like more or less 2%. You just need to smartly allocate your loaned money correctly.

True wealthy guys do pick up loans and easily but that is with there collateral.  and they won't be under pressure or express anxiety when the proceed of the loan is going bad just because they may not have to be put under the bars by the law enforcement agency, the worse is the collateral is withheld and life goes on. For a poor dude, it is not the same. A poor dude may sell off property or borrow from friend of which losing the money means more hard times. Well whichever , whether poor or rich loan takes something from someone if it goes bad.

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December 13, 2021, 09:52:14 PM
Merited by JayJuanGee (1)
 #8

They borrow money to buy assets before bull run
They use borrowed money to make more money.
If u dont learn how to use DEbt to create wealth then u stay poor all ur life.

U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.

If anyone start doing this no profit for wall street wealthy guys anymore thats how powerful is investing money what u borrowed.

I'm sorry - but now you can do a "disservice" to people with weak nerves and a strong desire to get rich quickly! First of all, you need to know from whom and on what terms to borrow money. Secondly, you need to know when and what to buy. If you do not have all these 4 indicators, you will lose money and go into debt, nothing more. To begin with, you should generally study what the market is and how it works. By the way - it is worth borrowing money for education Smiley

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December 13, 2021, 11:00:34 PM
 #9

I think that taking loans for crypto investments is rather bad idea. Crypto investments is so risky business that if trader is a bad analytic and doesn’t know for 100000% when alt/token will make next ATH, he can wait a long time even for several years till the growth or lose everything if that alt/token suddenly dump/scam. It’s easy to take loan and invest but that loaned money ends very quickly and then trader face long days of painful expectations, when the time to return loan (and percent’s) pressed for time. Usually when self-confident newbies take their first loan they forever become “slave” of a money borrower and till the end of their lives take loans, pay percent’s, pay loans, take more loans and again pay loans, and percent’s. These become a constant process that doesn’t bring huge money.
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December 13, 2021, 11:15:05 PM
 #10

Getting loan for investment is not always the best investment idea. Yes you can be lucky to profit in it but if you are unlucky then you blame and regret because you are going to pay back even from no where. Cryptocurrency is very risky but lucrative however you can't trust it to get a loan for investing in it. People succeed in it but not all the time, if you miss the buying and selling times then it will stay as loses for you. But it is better borrowing to buy landed property because lands always appreciate in value.

Wealthy money-savvy people take loans with their equity as collateral all the time. It's mostly a bad idea especially for the inexperienced, but it's a damn great tool if you know what you're doing; especially today where bank loans are like more or less 2%. You just need to smartly allocate your loaned money correctly.

True wealthy guys do pick up loans and easily but that is with there collateral.  and they won't be under pressure or express anxiety when the proceed of the loan is going bad just because they may not have to be put under the bars by the law enforcement agency, the worse is the collateral is withheld and life goes on. For a poor dude, it is not the same. A poor dude may sell off property or borrow from friend of which losing the money means more hard times. Well whichever , whether poor or rich loan takes something from someone if it goes bad.
Rich becomes richer and poor becomes more poorer and this had been the reality we've been living with which is it is normal that they would always have the previledge and the opportunity since they are financially capable.They wont get stressed if they had missed out something since they do know that they can pay. They could take loan all the want accoording into their business matters but poor could do the same thing but with limitation.
In time that poor the same thing then there's always a difference.
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December 13, 2021, 11:48:48 PM
 #11

Wall Street people looks different from common man. Not because of the investment style, but with the innovation/positive mind. Every Wall Street guy will be having some unique thing innovated apart from the investment. There are Wall Street people who have made billions out of investment alone, but at the very beginning they invest on talents rather than assets. How far this is true isn't known, but this is what I believe.
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December 14, 2021, 10:43:10 PM
 #12

Very great tool.
All rich people say it.
But there are some underlying principles behind it one should learn. There must be a plan B if the plan fails. There must be a technical know how to predict when the bull will run. There must be patience and there must be positive energy to take the bold step.
For the lion to feed, something must die.
That principle is not for everyone. Yes it worked for some people and also sent some to their early graves.

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December 14, 2021, 11:14:37 PM
Merited by JayJuanGee (1)
 #13

They borrow money to buy assets before bull run
They use borrowed money to make more money.
If u dont learn how to use DEbt to create wealth then u stay poor all ur life.

U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.

If anyone start doing this no profit for wall street wealthy guys anymore thats how powerful is investing money what u borrowed.

I'm sorry - but now you can do a "disservice" to people with weak nerves and a strong desire to get rich quickly! First of all, you need to know from whom and on what terms to borrow money. Secondly, you need to know when and what to buy. If you do not have all these 4 indicators, you will lose money and go into debt, nothing more. To begin with, you should generally study what the market is and how it works. By the way - it is worth borrowing money for education Smiley

The OP makes a good point, wall street and wealthy people borrow money
in order for that to make more money whereas common people borrow money
to buy stuff, to spend which ultimately decreases on value and it still has to be paid for.



Wealthy people know how to make money work for them, how to grow money
from someone elses money, what to invest in and how/when to make
and take profits in order to grow further wealth, they know how to pay the minimum
TAX too, they can afford to buy that information, but that information is not available to all.


R


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December 14, 2021, 11:18:10 PM
 #14

Wall Street people looks different from common man. Not because of the investment style, but with the innovation/positive mind. Every Wall Street guy will be having some unique thing innovated apart from the investment. There are Wall Street people who have made billions out of investment alone, but at the very beginning they invest on talents rather than assets. How far this is true isn't known, but this is what I believe.

They maybe rich in terms of assets or funds, but have you think of asking them, are they really happy and contented with their life? I guess, a lot of them are not contented for what they have because they keep on pressuring themselves to earn more. But for some poor people who are living in the countryside, I believe some of them are just happy for what they have. So in this case, we are only talking about the richness of people in terms of money or assets, but when you talk about different aspect, you may change your mind which one do you prefer when you are already in the retirement age.
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December 15, 2021, 01:58:50 PM
 #15

Greater risk is correlated with greater reward. Wall street takes bigger and more educated risks in contrast to most others.

Ideology plays a big role. Poor to middle class earners are raised to believe they can never become involved in stocks, bonds or investing without being scammed.

Those who enjoy greater financial success more commonly have a mentality of stocks, bonds and investing being winnable and profitable scenarios for those willing to invest time and energy.

The difference in mentality alone creates a divide spanning the rich and poor.
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December 15, 2021, 02:06:19 PM
 #16

Wall Street people looks different from common man. Not because of the investment style, but with the innovation/positive mind. Every Wall Street guy will be having some unique thing innovated apart from the investment. There are Wall Street people who have made billions out of investment alone, but at the very beginning they invest on talents rather than assets. How far this is true isn't known, but this is what I believe.

They maybe rich in terms of assets or funds, but have you think of asking them, are they really happy and contented with their life? I guess, a lot of them are not contented for what they have because they keep on pressuring themselves to earn more. But for some poor people who are living in the countryside, I believe some of them are just happy for what they have. So in this case, we are only talking about the richness of people in terms of money or assets, but when you talk about different aspect, you may change your mind which one do you prefer when you are already in the retirement age.
Everyone certainly has their own problems, even though they have abundant wealth but they also have their own version of the problem. pleasure they may get, but not necessarily they feel satisfaction in life, as if like wolves who are constantly looking for food. this is indeed related to a person's mindset

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December 15, 2021, 02:11:59 PM
 #17

That's stupidity.
It only works for the people who are capable of handling the interest rate and at the same time the people who are capable of handling the loss of money as well. I do think that assets should be handled with care, especially the one's you brought with the borrowed money. It's extremely easy to say such things in practical but honestly that's not really the case always, most of the times it's a bad idea to borrow money because the market is not consistent and you can loose a lot over time, it might go up and down and it's also volatile, so therefore you have no fix timesheet of when you will be making profit, as long as there is no security how can you say that it's the right thing to do?

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December 15, 2021, 02:15:54 PM
 #18

I'll choose the risk free way of investing and that's through using my own funds. Well, risk is always in investing and you'll be adding more problem by taking a loan and using it for what you've said. I'll take a loan if it's needed and there's really no other option for me if I'm in need of money. But as much as I can and while I have some spare and I can endure of doing nothing and instead of taking a loan just to satisfy myself, I'll save first before I take my next investment step.



 

 

 

 

 

 


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December 15, 2021, 03:57:40 PM
 #19

It's because they know how to do their stuff, and have the assets to ask for loans with whatever collaterals they have. It's like comparing someone that started at something vs someone that currently has nothing. It's a different situation between them and us so to speak, they have the space to handle losses, while most newbie investors can't even handle losing $100 on a single trade. That's just how stuff goes, it's like the value of money is rather different between the two just because of the sheer difference in capital between them.

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December 15, 2021, 05:36:18 PM
Merited by JayJuanGee (1)
 #20

They borrow money to buy assets before bull run
They use borrowed money to make more money.
If u dont learn how to use DEbt to create wealth then u stay poor all ur life.

U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.

If anyone start doing this no profit for wall street wealthy guys anymore thats how powerful is investing money what u borrowed.
But what you are forgetting to mention is that in order to get a loan you need to have money as well, most banks are not going to give you a loan if you do not have assets, high income or money saved with them or other banks.

So you need a minimum level of wealth for banks to give you a loan like that with a small interest rate, this is why many of those that became millionaires always say that the hardest million to earn was the first one, and the rest of the money they earned afterwards was way easier to get.

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