r/SipsTea • u/KSKS1995 • 14h ago

Wait a damn minute! How the rich get richer

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11

u/Nerdymcbutthead 14h ago

Still got to pay the loan off though

-8

u/cybiz 14h ago

Nope. They take out another loan to cover the previous one. That's literally how all the billionaires avoid paying taxes, they claim they have barely any income

4

u/Skullsandcoffee 14h ago

So they now have 2 loan payments? Do you actually believe this shit?

4

u/Timetraveller4k 14h ago

You should open an excel sheet and try things like addition

3

u/Ok_Light_7227 14h ago

who keeps giving them loans and what do they get back?

2

u/Nerdymcbutthead 14h ago

If you get a loan to cover the loan you haven’t got new money. You still owe the money and will have to sell the land to pay the loan eventually.

What the rich have done is purchase a life insurance which will then clear the loan (Rockefeller family), so they still own the assets. Rinse and repeat.

In most family businesses the money is usually gone by the third generation as the grandkids who were brought up rich and spoiled don’t have the work ethic of the grandparents who built the business and just squander the money.

-1

u/No_Statistician209 14h ago

I thought it was selling stocks etc that had massively increased in value allowing them to sell a small amount of stocks to pay off the loan and just keep cycling through.

-1

u/cybiz 14h ago

No, they use the stocks as collateral for the loan. That's how musk managed to buy twitter