I don’t know what to tell you. It’s terrible being so tight on money. I don’t have advice to give on that, because all I did was get lucky to not be working minimum wage…
But I have some semi-informed advice to give about keeping money safe and wanted to share…
And it’s good advice. Never sell during the crash, especially if you don’t need those funds for a decade or more. Individual companies might burn, but if you own a passive investment ETF, it will eventually recover with the market - provided you still own the investment and didn’t panic and are now holding cash instead.
Think of it like this, no money = nothing to lose!
There’s plenty of sources claiming how people like Elon have so much money in loans, when the crash comes the banks will quickly move to recover those debts.
On top of that, all you see are rich people telling others the way to get rich is getting loans upon loans. Well when the crash comes and again, you can no longer repay the loans, it’s going to hit hard! So much money is tied up in pretend money on gains that don’t exist!
Right now having no money is probably safer, my plan is getting out of debt as much as possible, as quick as possible. Hell, if it hits hard enough people might end up going back to trading goods for goods! 😂
Can you imagine if someway all the debts in the world were balanced? That if A owes something to B and B owes something to C and C owes something to A the debt becomes the difference? And this on a world level.
Well when the crash comes and again, you can no longer repay the loans
Well, is that the case? Afaik when they loan with a stocks amount as collateral, the X units of stock are the collateral, not the Y value of stock.
They just set aside more collateral value than the loan is worth. Say if you loan 1k the collatelar assigned will probably be 2-3k.
If the stock holding value gets dangerously low, the lender can liquidate your stock I think
But, EVEN THEN, the NET worth of say, Musk, doesn’t change too much in that case. Because net worth already has all debts subtracted from it.
It would change in the value equal to the difference between the loan value and the liquidated collateral value I guess, but I don’t imagine that would be very large? This part I’m unsure about.
So even in the end I don’t think they lose too much…
Oh dang, I only have enough cash for zero months. …where’d I put those bootstraps…
Look man… I’m sorry…
I don’t know what to tell you. It’s terrible being so tight on money. I don’t have advice to give on that, because all I did was get lucky to not be working minimum wage…
But I have some semi-informed advice to give about keeping money safe and wanted to share…
And it’s good advice. Never sell during the crash, especially if you don’t need those funds for a decade or more. Individual companies might burn, but if you own a passive investment ETF, it will eventually recover with the market - provided you still own the investment and didn’t panic and are now holding cash instead.
Oh, I didn’t mean anything by it lol. Soz.
<3
Breath and talk to myself “No, you will NOT make some highly inappropriate joke about zero money, bootstraps and necks…” breath
Think of it like this, no money = nothing to lose!
There’s plenty of sources claiming how people like Elon have so much money in loans, when the crash comes the banks will quickly move to recover those debts.
On top of that, all you see are rich people telling others the way to get rich is getting loans upon loans. Well when the crash comes and again, you can no longer repay the loans, it’s going to hit hard! So much money is tied up in pretend money on gains that don’t exist!
Right now having no money is probably safer, my plan is getting out of debt as much as possible, as quick as possible. Hell, if it hits hard enough people might end up going back to trading goods for goods! 😂
Can you imagine if someway all the debts in the world were balanced? That if A owes something to B and B owes something to C and C owes something to A the debt becomes the difference? And this on a world level.
Well, is that the case? Afaik when they loan with a stocks amount as collateral, the X units of stock are the collateral, not the Y value of stock.
They just set aside more collateral value than the loan is worth. Say if you loan 1k the collatelar assigned will probably be 2-3k.
If the stock holding value gets dangerously low, the lender can liquidate your stock I think
But, EVEN THEN, the NET worth of say, Musk, doesn’t change too much in that case. Because net worth already has all debts subtracted from it.
It would change in the value equal to the difference between the loan value and the liquidated collateral value I guess, but I don’t imagine that would be very large? This part I’m unsure about.
So even in the end I don’t think they lose too much…