People with valuable assets like gold, BTC, and real estate, especially those with portfolios worth over a million bucks, usually don't want to sell. Instead, they take loans against these assets to buy even more, which ends up pushing asset prices higher.
Think about it, if you could borrow at a rate of 3%-5% against your assets, you’d likely do it to pump up the prices. Sell a bit, make some profit, then pay back the loan with interest. Greed is a big part of human nature. You might do this a couple of times but then realize it’s easier to pocket the loan, maybe buy stablecoins, and tell the banks your business can't pay back the loan. Imagine borrowing 10 million bucks, putting it in your pocket, and claiming your business is bankrupt... talk about a potential repeat of a Lehman Brothers scenario.
Of course, you’d have to build a solid credit history first. Start with a 10 million loan, then it goes to 20 million, then 100 million, and eventually 200 million. At that point, you might think it’s time to take that cash. Your assets are collateral anyway, so if you go bankrupt, the bank seizes them. But what happens is a market crash, and those wealthy individuals who basically drove their companies bankrupt will swoop in, buying up assets at rock bottom prices using stablecoins or by creating a new company, like an LLC, and repeating the whole cycle. When the market's crashing, they will have the cash to scoop up the bargains.
So, markets really crash when the big players decide it's time to pocket easy bank money and file for bankruptcy. It's a sneaky way of getting what they want without any direct victims.
Asset holders prefer borrowing over selling
1 reply 371 views
It works because people dont care, instead of saying its not right and moraly wrong many people would say its smart genius idea like the trump genius act.
We live in world where morals are not popular but when stealing legally is something smart described.
Nothing changes if people will see crime but dont care about it then people have no rights to complain about anything.
Now i got point of this " genius stable coins act" off course smart people understood all this but try to teach fools they dont care those who invest in markets even will say thats not their business until the market crashing and they lose their wealth but then its a too late.
Knowledge is bless and knowledge cant be forced people either want to learn and get knowledge or either they dont.
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