[HN Gopher] Wealthy use debt to buy future cash flow everyone el...
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Wealthy use debt to buy future cash flow everyone else uses debt to
buy stuff
Author : themdpreneur
Score : 38 points
Date : 2021-05-09 21:31 UTC (1 hours ago)
(HTM) web link (themdpreneur.com)
(TXT) w3m dump (themdpreneur.com)
| [deleted]
| fungiblecog wrote:
| Am I the only one thinking "no shit sherlock?"
|
| The rich have the luxury of working on future income flows while
| the rest of us work to live now. How is this news to anyone?
|
| And those examples are just not practical for most people in real
| life.
| jandrese wrote:
| The title is misleading. The rich also buy stuff, but after
| they do that they have leftover money to invest into future
| income. The jist is that if the poor had more money they
| wouldn't be poor anymore.
| treeman79 wrote:
| Lottery winners often end up broke. This has happened to
| friends of the family.
|
| If you don't know how to manage money, you won't keep it.
| js8 wrote:
| I thought the wealthy use debt to convince the poor that they
| should use debt to buy stuff.
|
| Consumer loans are a capitalist invention.
| treeman79 wrote:
| Debtors prisons have been around for thousands of years
| fullshark wrote:
| So where can I buy an established website or used vending
| machine?
| fortran77 wrote:
| "Get rich quick with vending machines" is one of the oldest
| scams there is! Just try getting your used vending machine
| placed somewhere. No business will touch it.
|
| (Google "vending machine scams" to read about the sordid
| history of this whole business.)
| slig wrote:
| EmpireFlippers, Flippa, SideProjectors.com.
| pessimizer wrote:
| Because the US runs a massive trade deficit. Unless the
| government increases its debt just as quickly it's an
| inevitability.
|
| https://cepr.net/national-income-accounting-for-the-washingt...
|
| The wealthy use debt to buy capital because they have plenty of
| cash to buy stuff.
| hsbauauvhabzb wrote:
| The horizontal size of this page makes it unreadable on an iPhone
| XS.
| swframe2 wrote:
| What do you think of the pacaso.com business model? You can buy
| 1/8th ownership of a home. I wonder if the non-wealthy can
| collaborate to get the same outcomes.
| fshbbdssbbgdd wrote:
| How much of the value is pacaso capturing here?
| hutch120 wrote:
| I looked into vending machines many years ago and the overheads
| were massive. Insurance, maintenance, local government approvals,
| stocking, supply chain issues, vandalism, and the list goes on
| and on... it is a business where you must scale. You need to be
| running a fleet of vending machines to make it worth the hassle.
| There are some interesting companies tackling some of these
| issues in the IoT space.
| WarOnPrivacy wrote:
| > everyone else uses debt to buy stuff
|
| Like groceries, medicine, utilities, housing, transportation...
|
| ref: prepared bankruptcy cases for 2 years
| dbish wrote:
| The concept makes sense, but the specifics written here seem
| oversimplified and are going to mislead people. Realistically,
| it's not easy to turn a single vending machine or a purchased
| content website into a largely passive source of (significant)
| income for most people. Likewise, real estate purchasing is
| speculation in many cases and you can end up on the wrong side of
| that like many have in the past, losing everything when they
| can't rent out a place and they lose their job (like what
| happened in the last real estate downturn to many folks).
| Absolutely agree that if you are using debt, use it wisely, but I
| would have loved to see more specific and nuanced discussion of
| how to evaluate options for doing so.
| klyrs wrote:
| I mean, you're right about the little stuff. And that's why
| it's not beneficial for a poor person to invest in a single
| large investment (eggs in a single basket, as it were). But,
| folks with enough money will diversify their investments. Thus,
| they can tolerate a sunk vending machine or a brief downturn in
| property value. When the very rich lose because the entire
| market is crashing, they're still better off than the rest of
| us, because we experience the same crash (unless it's something
| stupidly esoteric like tulips, and even then, the upper-middle
| class tend to get stuck holding the bag)
| suifbwish wrote:
| Most of the time, real wealth is generated when something new
| is created that did not exist before.
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(page generated 2021-05-09 23:00 UTC)