In the past I used to wonder how and why billionaires say they need to borrow money and have negative money and crap.
Then I realized the way how things work is they take some of their stock, use it as collateral for a large loan from a bank, live off that loan, and never pay it back, since they get stock and not cash from their company, they just repeat the process. The bank obviously now has valuable stock and are happy with it, so the banks gets paid back and continues to loan even if their billionaire debtors are technically deadbeats.
I’ve heard it called the “infinite money glitch,” the way once you have assets valuable enough to use as collateral (i.e. high enough on-paper wealth), you can just keep borrowing money and never pay it back because there’ll always be bankers falling all over themselves to have your business.
In the past I used to wonder how and why billionaires say they need to borrow money and have negative money and crap.
Then I realized the way how things work is they take some of their stock, use it as collateral for a large loan from a bank, live off that loan, and never pay it back, since they get stock and not cash from their company, they just repeat the process. The bank obviously now has valuable stock and are happy with it, so the banks gets paid back and continues to loan even if their billionaire debtors are technically deadbeats.
I’ve heard it called the “infinite money glitch,” the way once you have assets valuable enough to use as collateral (i.e. high enough on-paper wealth), you can just keep borrowing money and never pay it back because there’ll always be bankers falling all over themselves to have your business.