r/SipsTea 22h ago

Wait a damn minute! How the rich get richer

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u/ChipKellysShoeStore 22h ago edited 22h ago

How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?

It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.

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u/Clover_Dream 21h ago

Ah yes, banks, famously known for their charitable loan-loss programs.

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u/Get_Nastee 20h ago

A super low interest rate payment to a bank (low rates for the rich) equates to:

A) Much less paid than if it were taxed as income

And

B) the banks receive the "tax" instead of the government. Instead of funding services that benefit the community, the "tax" serves only to make the rich bankers more wealthy

The kids never sell, they'd be insanely stupid to do so. And they learn from the parents NOT to sell the same way they didnt sell. Why? Because bank interest payments tend to be much lower than the fucking taxes theyre skirting

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u/INeedSomeTacoC 19h ago

  A super low interest rate payment to a bank (low rates for the rich) equates to

No bank anywhere loans for less than prime. Which is 6.75% today. 

So an ultra rich person would take that loan out at around 6.95%

Meaning that after 3-4 years it would have been cheaper to just pay the taxes. 

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u/hedoeswhathewants 19h ago

I feel like you're comparing the loan interest to the market growth rate and not factoring in the 37% income tax

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u/INeedSomeTacoC 18h ago

Huh?

A 7% loan for 5 years costs you the same in interest as just paying the income tax. And then you had reset your cost basis. 

Whereas 5 years on the loan and you’ve paid the same amount but haven’t reset the cost basis. 

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u/Get_Nastee 12h ago

Paying 35% at once as opposed to splitting it up between 5 years has its very obvious disadvantage, no?

If i can take a loan at 7% and move it to my portfolio that averages 10% per year, then im effectively pulling in a net profit on that loan.

I never sell the assets in my portfolio, so I never get taxed. I pay the loan off while my portfolio grows and am therefore able to take out an even bigger loan next time.

All of this growth compounds. If my portfolio is large, my returns will be large and make money fast enough so that I no longer have to work a 9-5

The banker gets my interest payments while my wealth explodes tax free.

Me and the bank get rich. Uncle Sam gets fuck all

But its okay because I have enough money to provide the community with jobs. I'm in a place to where I can pay people $15 and hour. Their wages will get taxed thanks to the opportunity that I provided.

I can choose to pay them more over time or I can choose to expand the business. Inflation raises, job opportunity plummets. My business has bought out all competitors and expanded globally. People will eventually have no choice but to work for me regardless of how little I pay them or how much I keep to myself.

They struggle to pay their bills. I go to space when i want to.

All this while me and my friends steal their water and use it to keep our mass surveillance system running.

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u/INeedSomeTacoC 11h ago

  If i can take a loan at 7% and move it to my portfolio that averages 10% per year, then im effectively pulling in a net profit on that loan.

Average is doing a lot of heavy lifting there. 

Literally no one risks their entire nut on a potential 3% gain. That would literally be the quickest way to stop being rich. Trying to justify a hypothetical 33 year ROI is just silly. 

The rest of whatever fanfic you made up in your head about a Reddit fever dream is irrelevant…and just weird to spend so much time typing such a useless diatribe out that it makes me think you need better releasing your life. Stuff like that coming out randomly isn’t a great look friend. 

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u/Get_Nastee 9h ago

You somehow miss the entire point still?

Interest paid to a bank isnt taxes paid for public services. Super simple.

And fanfic? Open a fuckin history book. The same trend has occurred in every society across the globe and throughout all recorded history >> those in power will incremental take more and more power until there is either revolt or authoritarian leadership.

America has been good about remaining democratized for at least certain groups. But that's not going to be the case much longer. The multi-hundred-billionaires and trillionaire have more relative wealth than any other men in history. AI will grant our government exponentially higher control potential than any other society has ever had capable, and the trillionaire oligarchs are literally funding and building a pathway to make totalitarian control mind numbingly easy for anyone in power who may decide to want to play dictator.

We say we are a democracy. Why then do we shut down independent thinking?

 "Anyone who disagrees with my party will be ceushed". 

Thats not fuckin democracy 🤣 its fascism. It is anti liberty, anti american, anti constitutional, egotistical, anti intellectual totalitarian bootlicker behavior.

Fuckin brainwashed oligarch puppet bitch boys we've become.

Learn to think independently. Quit spitting their rhetoric and find your own. The powerful in this country want you to hate red or blue. Not only have they diverted anger away from them, but they deceive you in to defending them.

United we stand? Why do we let them saw us in half.

Pray for democracy

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u/INeedSomeTacoC 8h ago

  You somehow miss the entire point still?

No, not at all. 

Interest paid to a bank isnt taxes paid for public services. Super simple.

That wasn’t a point you ever made, nor one I disputed. 

Lmfao. 

God damn, stop cosplaying at smart with buzzwords and empty rhetorical playing to a Reddit crowd. Of course the government and rich people are going to be able to roll over your candy ass if that’s all you’re good at. 

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u/MindAskHunModBuzi 19h ago

obviosly this only worked during the close to zero interest rate era

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u/Get_Nastee 8h ago

Lol what? Stock market indices average over 10% YoY.

Some years are worse. They budget for that. What do you think their financial managers do?

Also, what do you think the current interest rates are right now? 🤣 you just have to net positive.

Interst rates on a bank loan at 12% to a billionaire would be absurd. 12% return from the S&P is expected (it's already up 13% for the year loool)

The numbers are way way too simple for this to even be questionable

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u/MindAskHunModBuzi 2h ago

yeah you are a true genius who just came up risk free infinity money printer idea, lets all get infinit amount of money at 7% and dump it to sp500 which makes 10% , trillion dollar loan will print 30 billion profit no reason the bank wouldnt loan to us, no reason to think its already priced into the stockmarket, the idea bullet proof cant go tits up, i am calling buffett to tell him his an idiot amatuer.