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I’ve been trying to keep up with it but I just don’t understand how he profits from this scheme?
Rich people don’t buy stuff by taking it out of their checking account like us plebes. They get loans to buy their expensive crap like new businesses to run into the ground. Those loans are secured by other stuff they own, like how your mortgage is secured by the house you’re buying. Overvaluing your stuff means the banks are willing to loan you more money because they think your stuff is worth more.
If you (plebe) default on your mortgage, the bank takes your house and sells it to get their money back. If your stuff is overvalued, the bank won’t get all its money back.
Rich people don’t buy stuff by taking it out of their checking account like us plebes. They get loans to buy their expensive crap like new businesses to run into the ground. Those loans are secured by other stuff they own, like how your mortgage is secured by the house you’re buying. Overvaluing your stuff means the banks are willing to loan you more money because they think your stuff is worth more.
If you (plebe) default on your mortgage, the bank takes your house and sells it to get their money back. If your stuff is overvalued, the bank won’t get all its money back.