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”
All values are interconnected and relative. There is no such thing as an absolute value. For instance, is the value of the goose that lays golden eggs due to the goose itself, or because of the golden eggs it produces? Are the productive forces of life indeed more precious, or does gold hold greater value? If you find yourself on the brink of starvation without food, which is more valuable: the goose that lays the golden egg or the one that lays ordinary eggs? Value depends on context and circumstances, as it is inherently relative and changeable. In essence, all values fluctuate. - Joseph’s “just my thoughts”