When Push Comes to Shove 

Genetically… 

… we’re savers. 

Indians. 

Save. 

That’s a good thing. 

Since the ’00s though, our banks have started pushing loans as if there’s no tomorrow.

The motto seems to be : we don’t care who you are, just borrow. If we know who you are, here, borrow some more

That is dangerous policy. 

It sets the stage for a push comes to shove scenario. Savings are being lent further, and they might not come back. 

What counts when push comes to shove? 

Deposits in the bank? No. Gone. 

Real Estate? No. No buyers. No renters. Illiquid stuff just won’t move. 

Equities? No. Dumps. Good entry levels though. No resale value for a while. 

Bonds? Perhaps. Short duration ones, provided underlying doesn’t go under. 

Gold? Yes. Big. 

Trading? Yes. Options, forex, commodities, what have you. 

Cash? Yes. Provided there’s no hyperinflation. Use it for day to day life. Use surplus to acquire great bargains. 

Farmland? Yes. You’re then sorted as far as food and water are concerned. 

Use your imagination. 

Prepare for a push and shove scenario. 

It probably won’t happen. 

However, you’re prepared, just in case. 

What is it about Vacuums?

I borrow often.

Shocked?

You won’t be, after you hear my borrowing ideology.

You see, I only borrow against a solid structure I’ve already created. Free and idle cash makes me take grossly irresponsible and wrong decisions with itself. I’ve learnt to first bind my free and idle cash in a structure, and then to borrow against this structure to create another new and ultimately free-standing structure. I’ve been amazed at the quality of investment decisions coming through for me with this methodology.

Also, I try to only borrow for the purpose of creating this new (solid) structure. Because I’m creating this new structure with borrowed money, this makes me work that much harder during due diligence.

Furthermore, I borrow to create vacuum.

As you understand already, vacuum attracts flow.

On top of that, and this is the icing on the cake, when I’ve borrowed, there’s pressure on me to save, and to nullify the borrowing as soon as I possibly can. Believe it or not, this fact, coupled with the principle of attracted flow, leads to the borrowed amount being filled up (paid back) very, very fast indeed.

What I then have left standing is my original solid structure.

Oh, yeah, I also have my new structure, which I have just created, and which will serve me.

So worth it.