Infinite Money Loop
Start your own corporation
Grant oneself unexercised stock options
Use said stocks as collateral
Borrow a set amount from Lender A
Borrow double from Lender B
Pay off half to Lender A
Borrow double from Lender A
Pay off half to Lender B
Repeat borrowing and repaying
Of course that's a heavily simplified process, and it may not be the correct way to do it depending on the laws and regulations of your jurisdiction. But I still can't believe it's completely legal and even encouraged under capitalist economies using fiat currencies. I mention unexercised because exercising or selling stock options means you gotta pay capital gains taxes. Borrowing twice the money in consecutive periods allows you to pay off the previous loan, while still having enough to pay for whatever you want and need. If my math is wrong, feel free to correct me lol.
For example, say you require 64K a year to live comfortably in your city; by borrowing 128K in subsequent years, you can use 64K to pay off previous loan and have 64K for yourself. I specifically mention having to borrow and repay from multiple lenders because a single lender may catch on and not let you borrow from them lol. Again, this isn't legal nor financial advice as I'm not an expert and obviously I never took interest, principal, or other extra fees/payments into consideration. To exit the loop, you just gotta pay off your previous loan without borrowing again.
Grant oneself unexercised stock options
Use said stocks as collateral
Borrow a set amount from Lender A
Borrow double from Lender B
Pay off half to Lender A
Borrow double from Lender A
Pay off half to Lender B
Repeat borrowing and repaying
Of course that's a heavily simplified process, and it may not be the correct way to do it depending on the laws and regulations of your jurisdiction. But I still can't believe it's completely legal and even encouraged under capitalist economies using fiat currencies. I mention unexercised because exercising or selling stock options means you gotta pay capital gains taxes. Borrowing twice the money in consecutive periods allows you to pay off the previous loan, while still having enough to pay for whatever you want and need. If my math is wrong, feel free to correct me lol.
For example, say you require 64K a year to live comfortably in your city; by borrowing 128K in subsequent years, you can use 64K to pay off previous loan and have 64K for yourself. I specifically mention having to borrow and repay from multiple lenders because a single lender may catch on and not let you borrow from them lol. Again, this isn't legal nor financial advice as I'm not an expert and obviously I never took interest, principal, or other extra fees/payments into consideration. To exit the loop, you just gotta pay off your previous loan without borrowing again.
26-30