Up To $500,000 In Loans And Lines Of: Fill & Download for Free

The cheapest way to fly a corporate jet is to inherit, win, steal or earn enough to have an UNRESTRICTED cash flow of $1M each year. That 1M must not be earmarked for anything. No expenses, no mortgages, no loan payments. It’s truly after tax cash flow that is just sitting there without a home. Then buy a fraction of a business jet.That’s the minimum cash flow NetJets wants to see before they sell you a 1/16 share of a bottom of the line business jet.Smaller seats than first classNetjets no longer publishes the costs of its fractional program. However for an entry level light cabin (6 seats) expect to pay just over $500,000 for a 1/16 (50 hour) fraction. That money allows you 1/16 use of a their smallest jets for five years upon which time the $500,000 is forfeited. On top of this are the monthly management fee (around $9,500) and the hourly occupancy rate ($1,950) which is deemed as wheels up to wheels down plus 6 minutes taxi time at each end. Additional fees (fuel surcharges, airport taxes) can also be levied .So on top of the upfront investment, annual running costs for a light cabin jet will be in the region of $230,000 for 50 hours flying.So, if you’re really interested in joining the jetset, the cost of entry is fairly high. If you want to own a whole light business jet (Which will not give you ANY bragging rights around the country club) just multiply the numbers by 16.If you want to get into a more exclusive club, then you’ll need a Global 7500 and a thicker wallet.

Skip Broussard's answer is a good one, to which I would just add that many banks -- here in Canada at least -- have been offering personal lines of credit to retail customers for years. There are generally two kinds:Secured line of creditUnsecured line of creditA secured line of credit is backed by some tangible asset, such as the equity in your house or cottage. This generally requires an up to date appraisal. Also, there is usually a threshold of ownership. For example, suppose you have a home whose appraised market value is $500,000. You owe the bank $200,000 on your mortgage leaving $300,000 in equity. But, the bank requires that you own a minimum of 20%, which is $100,000 so they may be willing to extend to you a line of credit of up to $300,000 minus $100,000 = $200,000 as long as your credit history is in excellent standing. If not, the amount will be lower, possibly zero.With a secured line of credit, if you borrow money and then don't pay it back -- which is called "defaulting on a loan" -- the bank can seize the asset (house, cottage or whatever you put up as security) and sell it to repay the loan.An unsecured line of credit is one where the bank requires no security. These are similar to the secured kind except they usually have a lower borrowing amount and higher interest rates.Both types are essentially like a preapproved loan that you can tap as needed. You don't pay anything on it as long as you don't borrow any money. Once you do, you will be charged interest on the money you borrowed, and will have to make at least a minimum monthly payment large enough to repay the interest. The exact terms depend on the institution and perhaps your credit history.Some banks offer a credit card that is tied to your line of credit. This sounds great, especially given the much higher interest rates for regular credit cards, but check the fine print. With regular credit cards, interest isn't charged on purchases right away. You generally have several days of "float" -- an interest free grace period that extends from day of purchase to the next billing cycle. If you pay off your entire outstanding balance every month, you aren't charged interest on credit card purchases (only on cash advances).With a line of credit backed credit card, there is usually no grace period. You are charged interest from the time you make your purchase. Interest rates are lower, but using a regular credit is likely to cost you less in interest payments.

Remember the childhood game of Pass The Parcel (or Pass The Pillow)?(Image source: wikihow)The 2008 financial crisis was just a pass the parcel game, the only difference being that the parcel was a financial time bomb that would take everyone down once it exploded. And that is exactly what happened.So, who were the participants in this game?The general public (the innocent entity in the game, oblivious to the perils involved)The banks (your local, boring commercial banks)The investment banks - Merrill Lynch, Lehman Brothers and othersThe investment companies (another largely innocent entity in the game)The insurance companies - American International Group (AIG) and othersWhat role does each of this entity normally play in an economy?The general public deposit their savings in the banks and borrow from the banks. They also invest money in the products sold by the investment companies (Mutual Funds, Hedge Funds, Pension Plans, etc) and buy insurance from insurance companies.The banks accept deposits and give away loans (home loans, car loans, personal loans, corporate loans, etc).The investment companies pool money from investors (the public and the corporate houses) through their products (Mutual Funds, Hedge Funds, Pension Plans, etc), invest that money in the financial market (shares, bonds, etc) and share the yield with their investors.The investment bankers link the investment companies to the banks and other corporate houses.Insurance companies insures anyone who wants to insure something, in return for a premium.When acting individually and under strict regulations, these entities are pretty harmless, or in fact, quite useful for the growth of the economy. But in the early 2000s they began this dirty game of theirs that ultimately threw the entire global economy into disarray.What was the “game”? How did it all begin?House Loans.The game was all about housing loans. Under normal circumstances, a family that desires to buy a new house approaches a commercial bank for a loan. The bank verifies the application, sees if the family has the capacity to repay and a clear past record, and sanctions the loan (a.k.a mortgage) The family repays the loan over a period of time and if it fails to repay, the bank acquires the mortgaged house and the family is kicked out. The bank sells/auctions the house and recovers its dues.So far so good.But in the early 2000s, the investment banks and the investment companies were sitting on a huge pile of idle cash. The economy was dull and they had few opportunities to make big money. But the mainstream commercial banks were doing pretty fine, ‘coz the housing market is never really down (houses are always needed man!). The investment bankers thought why not join the banks in the real estate world and make use of their idle money to make…errr...more money!The investment banks asked the commercial banks to sell them their mortgage loans.Now why would banks “sell their loans” to someone?Suppose, a mortgage loan is worth $500,000 with 10% simple interest to be paid over 10 years. Thus, at the end of 10 years, the bank gets $550,00 from the borrower. The investment banker instead offers that the bank transfer (or “sell”) this mortgage loan to the investment bank for, say, $530,000.Why would the bank sell the mortgage at $530,000 to the investment bank when it is supposed to get $550,000 from the borrower himself?There is something called the time value of money. ‘$530,000 right now’ is a lot better than ‘$550,000 after 10 years’. It is, therefore, in the interest of the bank to accept the investment banker’s offer, which it eventually does.So the mortgage gets transferred to the investment bank. It's now the investment bank that recieves regular payments (loan repayment) from the home owners (i.e borrowers), or acquires the house in case of a default.Now we come to the next player - the investment companies, that were sitting on a pile of idle cash too and were looking for investment avenues as well. As mentioned earlier, the job of the investment bankers is to link the investment companies to investment opportunities. The investment bankers called up the investment companies -Invsmt Banker: “Hey bro, we have some new investment opportunities, wanna try them?”Invsmt Co.: “Sure, why not? What are they?”Invsmt Banker: “They are called…ummmmm… Collateralized Debt Obligations”Invsmt Co.: “Colled…..what? Never heard of them”Invsmt Banker: “Collateralized Debt Obligation.. They are cool man, just try them”Invsmt Co.: “Are the returns good enough and the investment safe?”Invsmt Banker: “Of course bro, they have got AAA ratings”Investment Co.: “Great! Send them over then”*end of conversation*And with this, the investment bankers passed on their mortgage loans to the investment companies in the guise of the fancy sounding thing called Collateralized Debt Obligation (CDOs).The dirty game begins here.To keep making more and more money, the investment banks need more and more mortgage loans and for that, the commercial banks need to give away more and more home loans. But there is an obvious limit to the number of well-to-do citizens in an economy who can be extended a loan. You cannot lend to anyone and everyone, lest they default. But the commercial banks thought, “Hey, why do we care? Once we sanction a loan we pass it on to the investment banks. It becomes their headache thereafter”. Even the investment banks would think on similar lines (“We anyway gonna pass the mortgage to the investment companies as CDOs, so why bother?”).With this, started the phenomenon of SUB-PRIME LENDING i.e giving away loans to “sub prime” customers (customers who didn't really have the ability and/or the will to repay the loan).And if that was not enough, even the insurance companies (our 5th player) jumped into the muck.They introduced a new insurance product with, again, a fancy name - Credit Default Swap (CDS). But these were less of an insurance product and more of a betting instrument. Just like you put a bet on a horse in a derby race or on a team in a football match, CDS were tools to allow you to bet on home owners (borrowers). You think Mr. Donald has no capacity to repay the loan upon which he bought that new house recently? You just bet on this via CDS. If Mr. Donald ultimately fails to repay his loan, you win the bet?Appalling, isn't it? But there's more to come….Soon, the investment bankers themselves became the biggest betters! They started betting against home owners; those home owners whose mortgage they were themselves holding!! Which means, they knew that the mortgages that they are holding are risky and low-worth. But why would they care? They were ultimately passing those mortgages on to the investment companies as Collateralized Debt Obligations!The bomb was up and ticking.(Pardon the crude look of the doodle. I did not have access to fancier tools)By 2008, home owners started defaulting enmasse. The betters were winning and the betting company (actually the insurance company) losing. The American International Group (AIG), the biggest insurance company involved in this, was on the verge of collapse in August 2008. It had to be rescued by the US government. [U.S. to Take Over AIG in $85 Billion Bailout]. The general public that had bought other insurance products from AIG suffered too.With home owners defaulting in bulk, the mortgages held by investment banks and CDOs held by investment companies became worthless. On September 15, 2008, investment bank Lehman Brothers crashes and so does the stock market [Crash! Shares tumble as Lehman Brothers collapses and fears grow]. And the Domino effect took down with it the entire global economy.........(Image source: wikispace)