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”
A scab forms when the skin is injured. This is to protect the wound from contagion while healing. If a scab is still attached when the wound is healed perfectly, it is no longer a protective mechanism and is an alien substance, not skin. It is the same with the wounded mind. Everyone has a defense mechanism to protect their wounds. Even if your wound is completely healed, if you adhere to your defense mechanism, it would be a foreign object. It's not a part of yours, instead, that should be treated like a tumor. - Joseph's "just my thoughts"