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Bernard L. Madoff Investment Securities LLC. once had a great return for people who invested as well. Lot of people invested all they had. No matter how good the returns are you should NEVER bet it all on one horse. People who Diversify usually are the ones not wiped out during market crashes.
Lost of people think they can borrow money and gamble on the market to get a better rate of return to be worth the spread. While possible, you risk losing money too, the Market is a form of gambling, not quite as risky as the slots or table games. i would never do this, but there are always those who think they can beat the system.
China regulators banned Crypto trading and mining, what if other countries like the United States do the same, you might end up with a worthless investment.
What if visions would kill any investment off from being made as there is nothing that won’t fail under what if scenarios.
It is the what if risks involved with investing that make us money…
Idea: At 5%, borrow 9k and it will take 5 yrs and 9 months to pay it off at $150 a month payments.
Just don't put all your eggs in one basket. Make part of that money produce more money for the short term.
Example- Rent out a space on your property to an RVer. Provide shared internet (even if you need to get a range extender) & free water. Space to put bikes, tools, etc. We did this for extra $ for 2 yrs during the 2008 recession.
Picture this-$150 loan payment & $25 to cover water & shared internet. Invest the remaining $225 a month. Only do this IF you live in a desirable area close enough to town which offers plenty of jobs and bus service.
Other ideas- rent out a parking space. No matter what, make the money produce more money on the side..in the immediate short term to cover the monthly loan payment. Along with investing. Too much risk otherwise. JMHO
In the past year lets say my house increased 100k in value. I have a 2% interest rate on my house. If I took out a mortgage at ~2% to liquidate that 100k in equity and put the money into a Crypto Stable coin like USDC. USDC earns 9% interest and I can get the interest payment either bi-weekly or monthly. I take that interest payment and apply it pay down the new loan (ill build equity on that), it would actually be enough to pay down the loan in full plus a few hundred on mortgage each month.
Obviously there might be a risk with USDC (more DD needed), but has anyone done something like this? I feel like this genius financial decison.
There's a fine line between genius and insanity !!
See post 30.
Bernie Madoff wiped out 65 billion of people's money. Enron. Etc.
This is the opposite of the way I personally would do it.... I don't like debt.
There's a fine line between genius and insanity !!
See post 30.
Bernie Madoff wiped out 65 billion of people's money. Enron. Etc.
This is the opposite of the way I personally would do it.... I don't like debt.
Just for reference the Madoff scheme was a loss of a lot less than 65 billion iirc and under 20 billion if I’m correct because there were never any investments and thus never any of the ridiculous profits people thought and the headlines grabbed. It also had nothing to do with leverage or debt so a bit off there
Just for reference the Madoff scheme was a loss of a lot less than 65 billion iirc and under 20 billion if I’m correct because there were never any investments and thus never any of the ridiculous profits people thought and the headlines grabbed. It also had nothing to do with leverage or debt so a bit off there
I read the Madoff books, you are correct. It may have been 20 billion of real money but it was 65 billion in money that investors thought they had. Amazing that he was able to fool so many people for so long.
I read the Madoff books, you are correct. It may have been 20 billion of real money but it was 65 billion in money that investors thought they had. Amazing that he was able to fool so many people for so long.
That's because he had a fair number of accomplices.
That's because he had a fair number of accomplices.
It’s actually because of the amount of greed investors possess. The entire scheme would have cratered if not for folks ignoring obvious warning signs and not just regular folks but large investment funds who simply ignored their own protocols for due diligence simply because they didn’t want to miss out on the “returns”. The regulators also severed a large roll in the disservice, “no one would listen” is a good book the details a lot of the issues
In the past year lets say my house increased 100k in value. I have a 2% interest rate on my house. If I took out a mortgage at ~2% to liquidate that 100k in equity and put the money into a Crypto Stable coin like USDC. USDC earns 9% interest and I can get the interest payment either bi-weekly or monthly. I take that interest payment and apply it pay down the new loan (ill build equity on that), it would actually be enough to pay down the loan in full plus a few hundred on mortgage each month.
Obviously there might be a risk with USDC (more DD needed), but has anyone done something like this? I feel like this genius financial decison.
You are talking about inventing with leverage. Many have done it. But your equation isn't accounting for risk. In the case, the risk that the market goes down and your lose your house. If you factor in the probability adjusted risk, this ends up being a stupid decision.
CB dropped its plan for a 4% USDC savings account on September 20. But whether it's CB or some offshore exchange, the investor making crypto loans is probably funding margin positions in speculative cryptocurrencies. But there's a regular danger of large spikes in speculative cryptocurrencies and then a real danger of exchange failure. Also, the U.S. says that crypto loans are unregulated securities and they are now not likely available except offshore.
Compare to a mortgage-REIT and I see one of the bigger ones at 9.03% dividend. Or I see an ETF of closed-end-funds at 6.47% dividend.
Actually, my hedged commodity trading operation targets larger gains than these. My cash is margin deposit on regulated exchanges of major commodities. The oil market or the gold market or the Treasury market is just not likely to wipe-out like a cryptocurrency might. The last black-swan commodity spike, that I know of, was January of 2015 in the Swiss Franc but my double hedging could have saved me even in that situation.
I could hold physical Bitcoin while selling long-term Bitcoin futures and gain the contango. But that doesn't match the gains that I otherwise target. And what is physical Bitcoin ? Sometimes cryptocurrency wallets are hacked. But also, significant value should not be held at the home or office or in a safe-deposit box. Physical gold is held in accounted and insured commercial bullion vaults and there are a few similar facilities for, I suppose, hardware-wallet cryptocurrencies.
In the past year lets say my house increased 100k in value. I have a 2% interest rate on my house. If I took out a mortgage at ~2% to liquidate that 100k in equity and put the money into a Crypto Stable coin like USDC. USDC earns 9% interest and I can get the interest payment either bi-weekly or monthly. I take that interest payment and apply it pay down the new loan (ill build equity on that), it would actually be enough to pay down the loan in full plus a few hundred on mortgage each month.
Obviously there might be a risk with USDC (more DD needed), but has anyone done something like this? I feel like this genius financial decison.
“There is no more dangerous illusion than the belief you can get something from nothing.” Bernard buruch
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