Why do rich people borrow money ?..I bet you this will so amaze you !!!!!!

A billionaire walks into a major bank in NYC. He requests a $5000 loan. Since his credit score is off-the-charts, he is granted this wish with a joke interest. Then, he leaves his Bugatti as collateral to the bank and leaves for a trip in Europe for the next week. The Bugatti is parked to the private garage of the bank and security detail is appointed.

When he returns home, he takes a cab to the bank and pays for his loan plus the joke interest (single digit). When the vale goes and gets his Bugatti for him, he asks why the hell did he do such a thing. He replies:

‘How else could I park my Bugatti in NYC with all the crazy parking fees for a week. This arrangement is basically a steal’

I just wanted to tell this story because it never fails to amuse me. This is not why rich people borrow money. It is because they leverage other people’s money to lower their expenses

Comments

Alert: Naira Gains A Massive 5% Against the Dollar

The exchange rate rebounded on Friday to close at N308 at the official interbank market. The local currency gained about 5.2% reversing the N325 it closed with on Thursday. According to reports, the gains was mostly due to a sale of forex by the Central Bank of Nigeria providing enough liquidity to meet the demand currently in the market. The naira has closed at an all time low of N364 to the dollar on Thursday following a surge in demand. The central bank has been selling dollars almost daily to boost liquidity and support the naira. Join our BBM channel for instant updates : C0030863D

Collapsed banks in Ghana recovered only $142 million out of $2 billion loans, Bank of Ghana Governor reveals.

The Governor of the Bank of Ghana, Dr Ernest Addison says out of the $2 billion (GHS10.1 billion) worth of loans taken by the receivers of some nine banks which collapsed in the country, only $142 million (GHS731 million) has been received. The Governor of the Bank of Ghana (BoG), Dr Ernest Addison The nine banks were UT Bank, Capital Bank, Sovereign, Unibank, Construction Bank, The Royal Bank, Heritage Bank, Premium Bank and Beige Bank. According to him, the receivership process has been painstakingly slow with other loan defaulters and shareholders of the defunct banks engaging in frivolous legal cases to sabotage the process. “The process has progressed slowly as out of the total loans of $2 billion (GH¢10.1 billion) taken over by the Receivers, total recoveries so far is in excess of $142 million (GH₵ 731 million) and this has been achieved through loan repayments by customers; repayment of placements; sale of vehicles; liquidation of bonds; and from...

SEC to end issuance of e-dividend warrant by June 2017

The Securities and Exchange Commission (SEC), has directed all registrars operating in the Nigerian capital market to end the issuance of e-dividend warrant to investors by June 31, 2017. This, according to the commission, will compel retail investors to embrace the exercise and stem the rising unclaimed dividend in the capital market, which is currently put at N80 billion. E-dividend is an electronic dividend payment which will enable an investor’s account to be credited after 24 hours that dividend is paid. The Director General of SEC, Mounir Gwarzo, while addressing journalists during the post Capital Market Committee (CMC), second quarter press briefing, held in Lagos yesterday, bemoaned the low level of patronage on e dividend registration in the market, noting that only 6,000 investors have accessed the platform. To encourage more participation in the exercise, the SEC boss explained that the CMC has agreed that all banks should...

The Finance Dude

Search This Blog