r/finance • u/AutoModerator • 19d ago

Moronic Monday - September 28, 2026 - Your Weekly Questions Thread

This is your safe place for questions on financial careers, homework problems and finance in general. No question in the finance domain is unwelcome.

Replies are expected to be constructive and civil.

Any questions about your personal finances belong in r/PersonalFinance, and career-seekers are encouraged to also visit r/FinancialCareers.

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u/Accurate_Pay_2242 19d ago

Bout to spend 50k on a tanning salon. Wish me luck on my path to 100 million dollars.
https://giphy.com/gifs/8YvIgOZOSS4Z2pamQU

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u/thoughts_undertaken 19d ago

Best of luck Bro

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u/Pretty_Swordfish 19d ago

I know it's a question that I should know the answer to, but....

Why is Stagflation worse than a market crash with 6-8 years of recovery? If I have a good amount invested, wouldn't Stagflation be ok since my buying power remains the same, even if there's no growth? The market crash and slow recovery would mean my buying power is lower for longer. 

Who is hurt by each scenario? If I am an early retiree with a modest WR (say, 3.5%), wouldn't I be ok in Stagflation? 

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u/Salt_Data3707 19d ago

Stagflation is very difficult for the Fed to navigate. If unemployment is high, inflation is usually low, so the Fed can lower rates to battle both. The opposite is true so if unemployment is low and inflation is high, they raise rates. If unemployment is high but so is inflation, raising or lowering rates will likely make one those issues worse.

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u/Pretty_Swordfish 19d ago

How does that affect someone who is either employed or retired with enough to implement guardrails on their spending? 

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u/Salt_Data3707 19d ago

If youre working, unemployment is your biggest risk. If youre retired, inflation is your biggest risk. These two groups would not be impacted equally in a stagflation environment, depending on what actions are taken.

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u/us3lessthrowaway 18d ago

how does billionaire finance work? I understand they get paid in assets (like stocks) and they dont sell them as that would trigger a taxable event. They borrow against those assets and that is how they fund their lifestyle.

But my question is... dont they have to pay back what they borrow? Wouldnt they need to sell something to pay off the loan they took out eventually and that would trigger a taxable event? How are they just perpetually living off loans?

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u/OptimalActiveRizz 17d ago

More often than not they are borrowing to finance an asset purchase, which is supposed to increase their income.

Principal payments are not really an issue as they would either have sufficient income to pay off the principal and interest when they come due or they would refinance the debt secured by the same or by more assets.