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US Politics 21w
If you don’t understand the difference between assets and liquidity you’ll probably sound dumb when talking about the Elon musk trillionaire situation.
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9
upvote 11 downvote
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Anonymous 21w

This is a guy who can get loans from the bank of whatever he wants

upvote 8 downvote
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Anonymous replying to -> #1 21w

You have to pay back loans…

upvote 5 downvote
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Anonymous replying to -> #2 21w

By liquidating assets like stocks, of which he has a trillion dollars worth

upvote 1 downvote
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Anonymous replying to -> #2 21w

Literally did this with Tesla stock when he needed funding to buy twitter

upvote 5 downvote
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Anonymous replying to -> #1 21w

Yeah sure. He could sell all of it and have a trillion in cash too (not considering selling shares of his magnitude would drop the prices significantly). But he chooses not to for ownership

upvote 0 downvote
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Anonymous replying to -> #2 21w

I mean yes he wouldn’t do it. But if he really really wanted to for some insane reason, he could

upvote 1 downvote
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Anonymous 21w

Well here’s my question, if someone lives in a million dollar house valued on the market, but 200k in cash, do you consider them a millionaire?

upvote 3 downvote
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Anonymous replying to -> #1 21w

You realize mass selling stock means crashing the stock price. If he had 3-4 trillion dollars in net worth he could probably fish out a trillion but not now

upvote -3 downvote
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Anonymous 21w

Just take out another loan against the assets that have gone up in value to pay off the last loan. This is a common thing

upvote 1 downvote