Sure they increased their money during the pandemic. People were acting like idiots buying homes and good when they really really shouldn’t have. It’s also true the rich prey on this. Go try to get 100 million in an interest bank account and see what happens, it’s actually harder to leave that kind of money in interest accounts because of how FINRA regulations work. Your money would literally not be insured. You wouldn’t know these things because you just hear other poor people talk about it.
Thus, the real crux of the problem. The poor don’t even understand well enough what’s happening to make a good argument. Between the wanna be rich poor people who talk about unskilled labor as if you just need to pull yourself up by your bootstraps and the poor who hate the rich, no one actually understands how it all works. And it all WORKS BECAUSE you don’t understand. If the poor didn’t respond the way they did during the pandemic, the rich wouldn’t have been able to hoover up all their money. Who’s taking the 22% loans, who’s buying houses they can’t afford on 30+ year mortgages at 8%. All of those actions make the rich richer. You want to stop the rich? Stop wasting your money. But even if you can, the rest won’t and the money will keep funneling up. Thus the real problem. But no one wants to change their life style. Instead they’ll go out and buy expensive handbags and other luxury items on lay away. You can’t stop the rich as long as everyone participates in capitalism.
UnderpantsWeevil@lemmy.world 1 week ago
Treasury Notes are 10x that rate. This mostly just illustrates how scammy and cheap your average bank has grown.
Dasus@lemmy.world 1 week ago
Yeah, my point here being that even with the puniest of interest rates, you’d still make more than enough just off the interest to live somewhat comfortably. And in reality, you’d make millions and you’d have so much you could risk a little of it while still having those safe investments yielding all the time.
UnderpantsWeevil@lemmy.world 1 week ago
I’d go one step further and assert that wealth compounds and borrowing rates fall with your aggregate wealth. Treasuries are the safest of safe bets, but there are much higher returns to be had with some minimal risk that become accessible when you have large cash reserves and access to cheap credit. Home ownership is a classic example. Save thousands of dollars a year on rent by owning an appreciating asset you get to live in.
You don’t need $100M to make this work. $100k can turn a handsome profit through compound returns on investment. In a stock market that yields 7%/year, you double your money in a decade.
Dasus@lemmy.world 1 week ago
Well, thanks for far improving my point with superior elucidation of how it would be actually done.
I thought home ownership as well, but then I thought he’d start complaining about house markets and insurance and whatnot. But we know that realistically it would be beyond easy to make 100 million grow.
thanks again