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> I have always been convinced that the general numbers on how many rich people (> 10M networth) there are is a total lie. Not really a lie, but most of that w
by game_the0ry 3y ago
> I have always been convinced that the general numbers on how many rich people (> 10M networth) there are is a total lie.
Not really a lie, but most of that wealth is on paper. Those people do not have $10M cash, they $10M in investments at today's fair market value.
Some amount of property appreciation is due to lower interest rates allowing home buyers to roll up their equity over time as they buy bigger, more expensive houses. That works when interest goes down, but the inverse...should be predictable.
- ldjkfkdsjnv 3y agoCommented this below, but: People can do things like take loans against their investment gains, use that money for other investing. It can absolutely be invisible to the IRS as they skirt tax laws. Another example, take the construction industry. Its estimated that half the money getting paid to construction contractors is under the table.
- game_the0ry 3y ago> People can do things like take loans against their investment gains, use that money for other investing. True, and asset prices go up even more, but what happens when they can't get the financing or have to start selling to pay down the financing of other assets as prices go down?
- ldjkfkdsjnv 3y agoThe economy starts to crash and the government prints more money, causing inflation. Which is then a tax on regular americans.