Somebody once told me this interesting tale about a millionaire who asks for a $5,000 and uses his supercar as collateral.
A man with a 7-figure net worth drives to a bank and asks for a $5,000 loan.
The bank manager says, yes, no problem, but we're going to need some collateral, some kind of security.
So the man hands over the keys to his Lambo and says, "it's parked outside, the title is in the glove compartment, you can keep the car till I pay you back".
A month later, the 7-figure man goes back to the bank and pays the back $5,000 plus $29.15 interest.
The bank manager gives the 7-figure man his Lambo keys back and says.
"Thank you, Sir. But I have to ask, why would you borrow $5,000 when you drive a Lambo?"
The 7-figure man says, "I needed to leave town on business for a month, and where else in New York City can you find a parking spot that costs less than $1 per day?"
Obviously the tale is made up. I'm fairly sure you can't just drive up to your bank and leave them the car as collateral, just like that. Or maybe you can. Who knows.
But either way, what's the moral of the story? Dunno. Been thinking about that, actually.
Perhaps, the moral of the story is that money creates money.
