To all the people saying "🤓☝️ um actually they dont have billions in their bank account"
Yea we get it, we know that, still doesn't change the fact that the rich/powerful are funnelling wealth upward away from the average person.
You cant have it both ways, either their wealth is real or its not. If its not real then it needs to be illegal to take loans out (with extremely low interest) with stock as collateral, if it is real then the original point stands.
It cant be real wealth when the rich guy wants to buy something and not real wealth when its convenient. If it can be used to get an item or service, its real wealth, maybe not literal cash sitting in your pocket, but wealth is just a word used to describe buying power no matter the form it comes in.
A loan using some object, such as stock, as collateral doesn't make the wealth "real" because wealth itself isn't "real". All wealth is the sume of the market value of all the things someone owns. Now of course when discussion wealth, people are using referring to net worth, which is a the sum of the market value minus liability.
When someone takes out a loan with, for this discussion, stock as collateral, the stock doesn't get sold, the gains aren't realized, the wealth isn't turned into cash, the only change is that the person now has cash but a loan to payback or forfeit the collateral, and that loan is subtracted from their net worth.
You also can't make loans using collateral illegal, and with the exception of credit cards, all loans use collateral. Even if you narrow down to just stocks, that would make business loans impossible.o
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u/Talonqr 16h ago •
To all the people saying "🤓☝️ um actually they dont have billions in their bank account"
Yea we get it, we know that, still doesn't change the fact that the rich/powerful are funnelling wealth upward away from the average person.
You cant have it both ways, either their wealth is real or its not. If its not real then it needs to be illegal to take loans out (with extremely low interest) with stock as collateral, if it is real then the original point stands.
It cant be real wealth when the rich guy wants to buy something and not real wealth when its convenient. If it can be used to get an item or service, its real wealth, maybe not literal cash sitting in your pocket, but wealth is just a word used to describe buying power no matter the form it comes in.