Read? Playing The Game of Leverage
"When the mind becomes TOO Greedy; it becomes LESS Savvy." - Createwealth8888
Investor and Banker. Who is smart? Who is stupid?
Let the story begins .....
An investor has saved more then $50K in a bank. When he saved his money in the bank he is actually lending the money to the bank. The bank agreed to pay him 1% interest rate per annum for borrowing his money.
One day, the investor discovered from X this wonderful strategy of Leverage for Passive Income - the idea of "borrowing at a cheap interest rate and using the money to buy a stable financial instrument that is paying a higher interest rate, thereby earning the difference between the two."
The investor decided to start small with $10K with his newly discovered wonder of making passive income.
He borrowed $10K from the bank. The bank agreed to ......