Quote from: teosanru on Today at 05:14:21 PM

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Quote from: teosanru on June 09, 2022, 05:50:30 PM

Quote from: Leviathan.007 on May 14, 2022, 04:38:38 PM

Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

I don't understand what is the logic behind this? The basic mathematics is that you have to invest in any asset which will give you a better interest rate than what you are paying for your loan or borrowing only then it can be said that it's profitable otherwise you are just struggling to pay interest, second thing here will be the cash flow loan interest generally you have to pay in cash while returns on investment you might not get in cash those will be reinvested. So this is financially wrong, also in times of high inflation you will find interest rates are also pretty exorbitant so technically makes no sense to do this.

Profit wise then we do know the benefits or advantage thats why some people do really take risk on getting a loan because they do know those probabilities but considering yourself putting some funds or investment in

crypto which wont really make out any assurance of profits but once it does then we know that it could give out those enormous profits which is something that you cant find on any investment or to those typical.

Its not that recommended on taking up some loan but there are instances or situations which there are exemptions or does really need such action.

I don't agree with you one this. Infact if you see in longer term Cryptos has always assured you profit (obviously if you were wise enough to keep everything in safe coins and not shitcoins). So this is assured that you will repay the loan and end up in profit. The only doubt is the cash flow. You might have to repay the loan at a time when there is market collapse, not to forget regular interest payments are due which you obviously won't be able to pay in bearish times.

Deal with the interest because its been there since from the start and you are fully aware of it before you do take a loan and on the time that you had applied then you had just
basically accepted with those terms which i dont see the thing or right action yet you are the ones who had dealt on it which you should accept the risk on paying those interest
whether its a bull or bear market.Its up to you or its up to your own choice as long you do agree with the terms and conditions then you wont really be having any
choice but to pay those interest no matter what.