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”
I believe Maslow’s “Theory of Needs” is a brilliant concept. Humans exhibit different behaviors based on their needs, prioritize satisfaction, and seek fulfillment at higher levels. This theory can also explain why artists often struggle financially. While art is not a necessity for daily life, it is an essential component of a fulfilling existence. However, it holds a high position in the hierarchy of needs, resulting in a small number of very famous artists accumulating substantial wealth within the art market. By analyzing people’s actions based on their needs, one can roughly predict the marketability and sustainability of their professions. - Joseph’s “just my thoughts”