A lot wealthy people not smart they just use debt

[Fullbear2222]

I spoken with my old friend he use to live in nyc around rich people he asked their business most of them said.
That it's debt they borrow money invest real estate buy to lease and sp500 and Even in crypto since many of them use llc options as company investors they not worry about
And they say markets always goes up
So many people just using the borrowed money nothing personal for them it's just game If they win they win If they lose then might be collapse but they are use to that after each crash wall street get bail out.
So a lot people are in high debt and they keep getting to make more debt a lot people using debt to invest.
The real estate prices not coming down so easy because there is a lot buy to lease deals.
And a lot gamblers are rich not smart just rich they. Was lucky because of good credit score.
A lot of markets are run by debt a lot investors using borrowed money not their own money
You guys tell that don't borrow to invest but that's not the case a lot people borrow money and invest and they not even worry about because they know markets will always bailed out and ATH after ATH always will be.
I mean the investors who are in debt are care Free they keep borrowing the funds and that's actually bullish and that's actually bring inflation
Also you in western financial world you don't have to pay fully your debt to increase your credit limit just keep paying few months and you could get more credit and you can invest more this money and If you are lucky you could make fast return pay back the loan and getting the bigger loan and more credit you really don't have to ask when banks see you play with money a lot they give phone call with offering credit to you more.
So until this huge borrowing and debt don't stop inflation not going down any time soon.
People who invest on markets they know more they borrow more higher the prices going the banks knows it too and when we look at the debt clock the debt growing bigger and bigger.
So a lot people are just recless they borrow care free and invest because a lot of them belive that markets going up always
All of this Will put the average worker Under bad situation when cant afford pay home rent neither mortgage and neither to own...because the bankers give a lot money really u don't have to pay even full amount you did borrow just pay some of it and you will receive phone call from the bankers ,hey we have good offer for you we can increase your credit limit
So you really don't have to be smart or genius just be brave and care Free and take the loan offers pay something and get more invest more borrow more and that's how a lot people do it a lot business is on debt huge debt If you Are in USA UK Europe au or Canada and you don't use that opportunity the easy credit then you miss good opportunity because those countries banking system is built the way to give you a lot easy credit even If you not paid complete funds you can get more and they really call you to take more credit.
So we live in the credit and debt economy and some people predict crash of this i don't think so because Banks not interested of collapse or value of money or lower inflation they don't care about they can keep doing this If inflation going too High well they do little rate hikes but they never stop it because they cant stop it anymore.
I think it's all clear now that in order to survive we have to keep borrowing to pay old loans from new loans
No political partie want to make that decision to let economy down and stop borrowing it will be hard decision not Biden not trump and not anyone others they will kick the can further on the road.
The all globe Will be in debt and i guess If it getting too much goverments just delete it and it all Will start again all over the new circle
There is clear message to people borrow reclessy and invest don't worry If it all get too much we delete your responsebility and start all over again.
No political leader will stop it they always borrow more and then they just give debt forgiveness so nothing valued it's all just the game those who borrow reclessly and gamble and invest will get rewarded for their actions of bad decions while the honest clear minded person hard working with good responseble mind will get punished by society so it all show's something to us nothing have no meaning just go and take get be greedy don't try act like you Are some person who try to live perfect way just go take it what you can don't worry too much because those who do this are rewarded by the society.
And Biden goverment is very good example of this nothing has no meaning and nothing has no value just take yours while you can nobody don't reward you If you act like normal person with hard working mind Biden goverment don't support this they support chaos just out of normal order living not just biden but UK Canada Europe moving to the same Direction.
Gone are those days when you get rewarded for your hard work and that you act with respondible mind and you do right things now our world moving to chaos of order when more miserble you are the better life you will have and those who don't gamble on the markets just working hard Will get less and less and they will be ones who pay high price of inflation.
That's why prices going up Banks borrow so much money that people can consume more than factories can produce If you as honest working person don't consume so much then someone who gamble with easy money Will consume 10 times more If you so that's why prices going up Because those who use easy money and line of credits they Will consume and buy things so much that demand is higher than supply.
When we had economy Crisis 2022 then there was report that Luxury cars had record sales offf course easy credit from the Banks
Banks don't care they can print the s..t out of the world

[Alphakilo]

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

[pinggoki]

Everyone already knows that but remember that those debts that they incur, we're the one shouldering those in some form or another, they're also basically not paying any of those debts because they're paying those with debts too and it's not something that any person can do, this type of stuff is something that's only the billionaires and influential people can do, we can't do this kind of thing on a small scale, we're going to end up bankrupting ourselves these way. I wouldn't agree though that they're not smart, that's a smart way to avoid taxes on your wealth, that's how Jeff Bezos does it so he won't be taxed in any way, he's living off of the debts that he asks on different banks.

[btc78]

This might just be one of the quickest ways to lose all your money. Spending money before it even touches you hand makes you feel unstoppable. You feel like you have no limit and you can afford ANYTHING
 
But take this from me that all will soon stop and you will have no choice but to adapt and look for other new ways other people get incomes. You would regret taking advantage of that time of your life and wishing you didn't love money as much as you did.

[kentrolla]

This has been the way rich and billionaires as well as industrialists have been operating for years as they borrow more debt to pay the debt wherein poor and middle-class have always tried to get out of debt and they spent their entire lives paying for it like mortgage and all and the crazy things I if you take a loan or you are in debt you go bankrupt most of the time but when rich take loan and they don't want to pay it's the bank which goes bankrupt. We have seen this in India.

[teamsherry]

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

Debt has never been a bad thing it's just used wrongly by most common folks, have you ever wondered why bank gladly borrow money to business men even if they are owing?, that's because they make money of the little percent they take as interest.

If you take loan to invest in a business then you have made a good use of a loan and if you use it for personal needs like buying food or living luxury then you just created a mess for yourself to solve later.

[Dr.Bitcoin_Strange]

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

Robert Kiyosaki was a US citizen. I know he talked about how he used debt to become rich because he used his debts to purchase assets and not liabilities. The reason why I had to mention the country where this man comes from is because if he had come from another country, maybe an underdeveloped country, he probably would not have archived what he did archive with his debts. 

Bro, things work differently around the world. The traditions, laws, and opportunities in the east may not be the same in the west and the same in the north, etc.The principle of one man cannot work for everyone. Debt is not favorable for everyone. 

Debts (loaned money) are also used for other important stuffs, but apart from assets, there are other life issues that make people take out loans, which is very important stuff for them too. 

It's a fact that you can actually take a loan to make an investment or purchase an asset but still don't get the expected returns due to the circumstances of the bad investment. For example, people are advised not to take out loans and invest in Bitcoin.

[alastantiger]

This has been the way rich and billionaires as well as industrialists have been operating for years as they borrow more debt to pay the debt wherein poor and middle-class have always tried to get out of debt and they spent their entire lives paying for it like mortgage and all and the crazy things I if you take a loan or you are in debt you go bankrupt most of the time but when rich take loan and they don't want to pay it's the bank which goes bankrupt. We have seen this in India.

If wealthy people use debt to get rich and richer, isn't this kind of like the secret to being wealthy? Poor people should simply follow in that footsteps too. They should go the bank and take out a loan, you it to start up a small business and stay committed to it and when the business booms, they can be able to pay off their debts with the interest. They don't have to take a large amount out as loan initially so that they are not under too much pressure, they should start with something small and build up from there. This is one way that they can build wealth.

[Riginac111]

There is something that you are supposed to understand for anything that I have to do with investment you need to be careful to understand it many people today who is rich can be a debtor based on they have ambition and they need to execute it with a risk measure so before you invest you may or you may not make a proper research towards that investment but I know carefully that investment have to deal with proper research so on my own understanding you have to take a risk to make a profit because a risk taker is liable to be rich

[Volimack]

As far as I'm concerned rich people have a lot of money they don't have debt for more ambitions and they don't have a problem paying off the debt. But for the poor the debt is like a burden they take the loan after the danger so they try to get out of there by paying it as soon as possible. The poor are afraid to take risks so they cannot build much wealth. Rich people build wealth because they take risks.

[poodle63]

different people have different approach but the fact that with good credit score give you access to capital through debt means the rich people with good credit score got the advantage and yes there are many people living out of the debt alone it reminds of robert kiyosaki he kept talking about his big debt which amounts to $1.2 billion and said if he go bust then the bank also go bust and its not his problem which kinda make sense if you got big debt amounts to billions you always got room to negotiate with the bank since its also the banks problem but if its lets say just $50k you gonna be chased to oblivion thats just how the world works.
don't be surprised when you see people with high debts actually could afford living luxurious life, the important point here that you need to take note is that as long as you can pay the debt regardless whether its coming from your pocket or from another loan then bank will see it as a normal healthy loan i assume thats why many rich people exploit such loophole.
though i'm pretty sure there are other rich people that also try so hard to stay away from loan at the cost of them never have that good credit score.

[Cryptomultiplier]

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

This is very true for many cases I have seen and I must attest to the fact that the wealthy remain so, because they know how to increase their value and thus have maintained a good income record overtime, in that they now have access to loans and good credit schemes that affords them enough to reinvest, seeing they have clear insight on how the returns would be.

Debt is made available to many who have knowledge of the terms and conditions and is responsible enough to abide by it in such a way that the creditors have faith in their timely returns.

[Gozie51]

The poor are afraid to take risks so they cannot build much wealth. Rich people build wealth because they take risks.

This is where the difference is. The rich is already exposed to risk and he goes ahead to take more risk by running himself into repayable debt, such debt that the poor never venture into. The poor doesn't want a "stigma" or name calling of being indebted and so he finds it difficult to get a loan to run a business but the rich doesn't look at that, he approaches the bank and sign off a loan contract to establish his business or refurbish it after which interest is being charged on a long term and he will have his business running with the sum of the total money that the poor has deposited in the bank. So it is clear the rich are there for the risk that the poor is scared of.

[Bananington]

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

It takes a different level of confidence to get into debt, and this kind of confidence is usually not common among people who are not rich or people who have not come across a certain amount of money in their lives before. Also many poor people are not capable of getting into the good debts because they do not have the collateral for this sort of loans from banks or individuals, because there are even people that would not lend you some amount of money that they know you cannot pay back. Before you can get some good loans you need to have some good collateral, and rich people have this, so they can easily take these loans.

[bluebit25]

That is the behavior of a certain group does not represent the whole of what is going on in the financial system, so the further question is where are the people who are debt-free and still rich?

But in this situation, I feel that the behavior of reinvesting in debt and still succeeding is like the way a balloon is filled. Things will explode until they can't balance their operations, but nonetheless, everything they reflect gives some perspective on the potential for major risks that haven't happened yet.

[Egii Nna]

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

Debt has never been a bad thing it's just used wrongly by most common folks, have you ever wondered why bank gladly borrow money to business men even if they are owing?, that's because they make money of the little percent they take as interest.

If you take loan to invest in a business then you have made a good use of a loan and if you use it for personal needs like buying food or living luxury then you just created a mess for yourself to solve later.

You can't classify using a loan to solve your personal needs as the wrong way of managing debt. We all know that most people who usually use loans to solve their personal needs do that. because they don't have any other way or solution for their problem, even though they will know that at the end of the day it will be a great liability for them to pay back. But some loans or debts are collected due to emergencies, and there is no other solution, so they have to do that in order to feel free from it.
 
Furthermore, it is not that the poor cannot collect debt to invest in others to make a benefit, but they don't usually have the chance to do that due to their financial status because, without collateral, no one will give you a loan of a higher amount that will be enough for you as a poor man to start up a new business. That is why loans became a liability to the poor and, at the same time, sweet for the rich, so don't see the fault of the poor, who always struggle with depth.

[iBaba]

If wealthy people use debt to get rich and richer, isn't this kind of like the secret to being wealthy? Poor people should simply follow in that footsteps too. They should go the bank and take out a loan, you it to start up a small business and stay committed to it and when the business booms, they can be able to pay off their debts with the interest. They don't have to take a large amount out as loan initially so that they are not under too much pressure, they should start with something small and build up from there. This is one way that they can build wealth.

I don't think that's smart enough for the poor to jump into loans in the name of copycating what the wealthy people do. No any one, whether rich or poor should go that route. Secondly, anyone taking loan from either an individual or government supported loans, should first evaluate what they intended to do with the debt their incurring and also sought for how they can recover their loaned money before the deadline they must have given.

Aside from other life threatening cases that may warrant people to borrow money solve those issues alias safe lives, it is discouraged by wise men not to go into loans that can be wasted easily rather than taking loans for the sake of productivities.

[jaberwock]

That is the behavior of a certain group does not represent the whole of what is going on in the financial system, so the further question is where are the people who are debt-free and still rich?

But in this situation, I feel that the behavior of reinvesting in debt and still succeeding is like the way a balloon is filled. Things will explode until they can't balance their operations, but nonetheless, everything they reflect gives some perspective on the potential for major risks that haven't happened yet.

Maybe if you could do a survey, you will find those rich people that are still free of debts. With that said, their numbers can only be small because I also notice that many rich people do always have a debt. Sometimes poor people are better than them in terms of it because poor people are already poor and don't want to increase their headaches anymore by having a debt.

The only good thing about rich people who have a debt is they have businesses, investments and others... This is where they use the money that they borrow. I think most rich people who does this are smart and strategic, so they also know how or when to stop once they think things are not running well anymore.

[CryptopreneurBrainboss]

So many people just using the borrowed money nothing personal for them it's just game If they win they win If they lose then might be collapse but they are use to that after each crash wall street get bail out.
So a lot people are in high debt and they keep getting to make more debt a lot people using debt to invest.

I don't agree with you that many people are using this loopholes to become wealthy, if you said a few people, that would had made more sense because only a few people are using it. Others have tired but aren't successful at it because although this is a great way to hack the system but if you fail you'll be in debit. Using borrowed money to finances your business or investment is a skill only the 1% of the world can use to become rich. If you don't have financial education don't borrow money or use debt because you'll only add to the debit that you already owe and your chances of defeating poverty reduces. There are actually people that made it because of their smartness and that's because of the quality they gained because they worked for it.

Borrowing has alot of interest attached to it and there's a feeling that comes with borrowed money that you can't use them freely as you'll use your spare money. If you had a borrowed money in an investment, you won't waste time to exit with any profit that you can grab because you know you can't risk losing that money unlike when you are in an investment with your spare money. You won't mind to continue hodling knowing if the money get lost, it won't affect you because it's a spare money and those are the type of money that's perfect for using when investing in Bitcoin and any other businesses unless you have the financial education to take advantage of borrowed money.

[The Sceptical Chymist]

OP....before I even comment on your topic, may I suggest you not create threads with enormous Great-Text-Wall-of-China posts?  Just scrolling through yours, I immediately don't want to read it as I'm 98% sure you're going to be using far more words than are necessary to get your point across.  Thank you in advance.

*10 minutes later*

And now that I have donned my forum muck boots and waded through the aforementioned wordspray wall, I'm having a damn hard time trying to find the importance of your concern, much less all of the writing you've dedicated to it.  Do you live in a first-world country?  This isn't an insult if you don't but if you do, your ability to do things ranging from buying a house to buying stocks on margin to getting a credit card depends on you having some history of debt repayment.  It's a bullshit system IMO, but that's the way it is. 

Wealthy people?  Oh hell yes they use debt.  If you're smart enough to find an investment that will pay you 15% a year for instance, it makes complete sense to borrow money at a much lower rate to finance the purchase of that investment.  That's smart use of debt--and it's why wealthy folks tend to remain wealthy if they've held onto money for any length of time.

The rest of the plebs?  The only way I can put this is that debt is like a loaded crack pipe that all of them seem to want to partake in a-smokin'.  Credit cards, student loans, car loans, mortgages on houses there's no chance in hell of paying off.  Et cetera, et cetera.  And OP?  Please go back to my first paragraph and read it again.