They borrow money to buy assets before bull run
They use borrowed money to make more money.
If u dont learn how to use DEbt to create wealth then u stay poor all ur life.
U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.
If anyone start doing this no profit for wall street wealthy guys anymore thats how powerful is investing money what u borrowed.
Wall street banks at setup from the very beginning to make money in markets whether they are good or bad. However, as we saw from the sub prime mortgage crisis in 2008 - sometimes they get too greedy and they manage to wipe themselves out. Low interest rates have actually been a menace to the traditional banking sector which relies on deposits and giving mortgages with a fixed balance between the two. However investment banks are able to go wild and borrow money at very cheap rates, that then get flipped into even more money. The worst part is - they often make a margin with almost zero risk because they'll use all sorts of beneficial leverage or put their customers money in the danger zone before their own.