- cross-posted to:
- us_news@lemmygrad.ml
- cross-posted to:
- us_news@lemmygrad.ml
cross-posted from: https://lemmygrad.ml/post/3374610
Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's in $1.2 billion debt.
https://www.livemint.com/money/personal-finance/rich-dad-poor-dad-author-robert-kiyosaki-acknowledges-he-is-1-2-billion-dollar-in-debt-if-i-go-bust-the-bank-goes-bust-11704369035314.html
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.
Exactly though; Why on earth would any bank ever lend that kind of money, given this is the case? The banks are creating their own problem by giving “rich” people money seemingly without even bothering to check their finances
That rule only applies to us poors
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.
Does the lender believe the borrower has enough income to pay the minimum monthly payments?
Does the lender believe the borrower has enough assets, which if liquidated could pay off the remaining debt?
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.