The magic of compounded interest

testIts just not legal and perhaps that’s the problem brokers are faced with when it comes to financing projects.  The word finance basically to me should mean making something out of nothing.  Isn’t that basically what these companies are doing?  If your trying to buy a $35,000 dollar car and you only have lets say $4000 basically your looking for someone to create $31,000 dollars in value for you stretched out over 3 or 4 years most likely.  That’s why its interesting when you see the magic of compounding interest.  Perhaps debt collectors don’t understand the basic fundamentals of math.  I can’t think of a more foolish way to waste my time than trying to collect on a debt that is more than 7 years old but some people do.  Its impossible to annoy people past a certain point but lets say for luck’s sake I had a portfolio where I lost approx $14,000 in a matter of 2 weeks.  Certainly that’s quite a loss but unfortunately banks are never accountable for there losses it would appear.  If I could compound the interest of 29.9% per year over 13 years in today’s market this loss would be approximately $419,804.41 owed to me.  Can you imagine what I could do with that kind of money.  Even if the original principal was applied at $14,000 that surely is quiet a chunk of money.  Course you could even apply the same rate to 50% less the original principal and you will see where I am going with this.

I guess basically this is how I say don’t talk to me about losses I’m sure we can find better ways of calculating loss.  Hindsight is 20/20 but there are some foolish things I would never want to do again and trading seems to be one of them.  Its like how many times do you have to be hit on the chin before realizing its time to take a fall.

Leave a Reply

Your email address will not be published. Required fields are marked *