cross-posted from: https://lemmygrad.ml/post/3374610
Rich Dad, Poor Dad’ author Robert Kiyosaki reveals he’s in $1.2 billion debt.
Can i borrow a billion dollars please i promise I’ll do economy stuff or whatever
taking the bank’s money and turning it into stuff on a scale that makes them afraid to foreclose on you just sounds like winning at capitalism
like, sure, call in the loan, good luck repossessing all of my hidden buried treasure
Kiyosaki also based the “poor dad” on his own dad. The book states the poor dad is an unsuccessful person because he decided to work in an actual job, paid his debt and never teach his child the grind.
In actuality his dad was a school teacher who at the end of life is well respected within his community and plays a role in Hawaiian politics.
If you’re a thousand dollars in debt you have a problem, if you’re a billion dollars in debt they have a problem.
How the fuck does that even happen? Who was loaning this man money? Why? Was no one looking at anything before giving him more money? No one asked how much debt he already had?
Why can’t I get a loan for $1,200,000,000? Hell no one would even give me a loan for $500k to buy a house. And my net worth is apparently much higher than this dude with it being slightly above $0 rather than negative $1.2 billion.
I feel like there should be a limit on individuals that you can have like, let’s say $1 million of debt total. Any more than that and everyone tells you “Nope, pay up.”
Also shouldn’t having more loans mean no one will loan you money? The person most deserving of a multi million dollar loan is certainly not the guy with millions of dollars in debt, it’s someone who’s never had a loan in their life. For some reason having more debt makes banks seemingly more willing to give you money and I cannot comprehend it.
Loans are given out for 1 reason, to receive interest payments.
If he’s making the interest payments, then they’re going to keep loaning him money.
Lenders often make stupid decisions and risky loans but at its core, a loan is determined by two(three) things.
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Does the lender believe the borrower has enough income to pay the minimum monthly payments?
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Does the lender believe the borrower has enough assets, which if liquidated could pay off the remaining debt?
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Is it worth the risk?
I’m no finance expert and there’s a lot of specifics between different types of loans that have different reasons. Like a personal loan, mortgage, car loan, business loan. Way more than that idk.
There’s also reasons banks will or will not loan money that are a little more vibe based, ie racism, classism.
But the lenders, either correctly or incorrectly, have determined he has the income streams and the assets(sounds like he owns lots of property), that risking 1.2 bil made financial sense. A lot of thst probably is tied to real estate.
Having said all that holy shit that’s a lot of money. Assuming he’s paying only the interest at 3% apr that’s $36,000,000 a year. Fuck.
