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 are never poor to begin with, the rules of borrowing money is having something to tender as collateral just in case, lenders don't just lend out money to anyone, you have to worth something yourself.
True. You cannot just easily take a loan without any collateral to present that can also cover up the worth on the amount you wish to borrow. This is what most of the traditional lenders too.
However, lending money is not at all times productive. Because there are cases that your business had boom in its first months, but later on started to crash or collapse. Its like crypto too, there are no guarantees that you will always gain profits, as the market has its own flaws too. So if you wish to borrow money, make sure that you also have other stable sources of income that will pay your loan when crypto fails to do so.