Credit Rating and Required Rate of Return: Suppose you and Warren Buffett borrow money from a bank. The bank will assess your credit ratings differently. Maybe the bank could offer Warren Buffett a loan without interest since it can be advertised as a bank used by the renowned investor. However, it will likely charge you interest because you have a lower credit rating and less fame than Warren Buffett. The interest rate each borrower faces, based on their creditworthiness, is called the required rate of return for creditors. Under the same conditions, the cost of poverty is much higher for the poor than for the rich. Poverty inherently involves costs. - Joseph’s “just my thoughts”
Fragrances that only capture pleasant scents lack appeal. A combination of bad scents is necessary to create a pleasing aroma. Just having good elements doesn’t ensure quality, and similarly, having bad elements isn’t necessarily negative. This concept is referred to as “bistability.” Emotions operate comparably. If you laugh in any situation, people may perceive you as a psychopath. On the other hand, being treated as depressed when feeling down is common too. Yet, when the contrast between mania and depression is too pronounced, mental health suffers. It’s essential to develop both positive and negative emotions. Like a beautiful landscape where good and bad elements coexist and balance one another, emotions should reflect a similar harmony. - Joseph’s “just my thoughts”