Yes, billionaire’s money is largely tied up. They could structure how their earnings are managed, though. Musk sees much faster growth than would be expected from a conservative growth portfolio. If he were invested for conservative growth though, at an average interest rate of 5-6% and he gave away only his interest he could give every person experiencing homelessness in the US $50k/year forever.
He could easily structure things in such a way to make that happen.
It’s not so much that it’s tied up, but rather that it’s not real yet can still be used as economic leverage. Elon Musk taking out a massive loan to buy whatever because his company is worth this and that isn’t functionally that different from me taking out a loan because I might win big at the lottery sometime within the next 50 years.
At some point they start playing fast and loose, and then you end up with bubbles that the rest of us have to pay for because all that imaginary money has to come from somewhere.
Yes, billionaire’s money is largely tied up. They could structure how their earnings are managed, though. Musk sees much faster growth than would be expected from a conservative growth portfolio. If he were invested for conservative growth though, at an average interest rate of 5-6% and he gave away only his interest he could give every person experiencing homelessness in the US $50k/year forever.
He could easily structure things in such a way to make that happen.
It’s not so much that it’s tied up, but rather that it’s not real yet can still be used as economic leverage. Elon Musk taking out a massive loan to buy whatever because his company is worth this and that isn’t functionally that different from me taking out a loan because I might win big at the lottery sometime within the next 50 years.
At some point they start playing fast and loose, and then you end up with bubbles that the rest of us have to pay for because all that imaginary money has to come from somewhere.