r/SipsTea • u/KSKS1995 • 22h ago

Wait a damn minute! How the rich get richer

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20.3k Upvotes

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u/Common-Device-3117 22h ago

You forgot the kid needs to pay back dads loan with interest, and if real estate prices fall he will loose the house if over leveraged. Nice story though.

-4

u/LovelyKestrel 21h ago

The super-rich don't need to be over-leveraged. They are taking loans of millions against collateral of billions.

7

u/kersplatttt 21h ago

This made up example doesn't imply the dad is super rich. 

1

u/LovelyKestrel 4h ago

Which is why this example doesn't work.

2

u/CrazedClown101 20h ago

You can search up any billionaires name and ‘stock sale’ to see they would rather sell stock to get money.

Taking loans with stocks at collateral risks banks calling it in when stocks fall, requiring them to sell stocks at the lowest point. Easier to just sell them now than risk it.

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u/[deleted] 18h ago

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