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If a landlord who lives as you say puts their entire 'salary' into Tesla stock, rather than using it to pay down the equity on the property, we would say that i
by rland 6y ago
If a landlord who lives as you say puts their entire 'salary' into Tesla stock, rather than using it to pay down the equity on the property, we would say that it's fair that they would lose their investment if their Tesla bet doesn't pan out.
But if they put it into their home equity instead, any loss is unacceptable to us.
Why?
- fierarul 6y agoThe stock rules weren't changed out of the blue. But, no worries, once people figure out the risk involved in home equity this will be derisked and have surprising outcomes.
- AnthonyMouse 6y agoIf you put all your money in Tesla stock and then it declines because Elon Musk is an unpredictable fellow, you made your bed. Everybody knows that's a higher volatility investment than real estate is widely considered to be. If you put all your money in Tesla stock and then it yielded an ordinary market rate of return but the government decided to take all your profits because if you have enough money to own stock then you must not need it very much, yet not take all the profits of landlords or Bitcoin speculators or privately held corporations, can you see why someone might regard that as unreasonable?
- Wowfunhappy 6y ago> but the government decided to take all your profits I recognize you're responding to a post that was somewhat extreme, but it's worth noting that right now America is nowhere close to this point. There's a trade-off to be had between equity for citizens and allowing individuals to reap the rewards of their choices and work in a way necessary for a capatalist society to function. I don't know exactly where that balance is, but I think it's pretty clear we are way off the mark right now!
- srtjstjsj 6y agoIt's worse than what AnthonyMouse said. Cancelling rent isn't "taking all true profit", it's "taking all the revenue".
- simonh 6y agoNobody said anything about 'any loss being unacceptable'. Of course some losses are inevitable, but there are many ways to share the costs and socialise some of the losses. Stimulus checks are one that was explicitly mentioned, in case you missed it.