And most of them I've seen are frittering that money away on bullshit, content in the idea that the gravy train will keep continuing ad infinitum.

Not necessarily.

I get a loan for a rent house, I'll be paying it for 30 years.

I take your rent check, pay the loan fee, and invest the rest.

The market crashed. I lose my investment. My renters lose their job. No one can afford rent that matches the minimum loan payment.

Where is the real money again?

That's a strawman argument. In any case, if you keep your money in the market, you'll almost certainly see it again.