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> Falling asset prices hurt the middle class far more than they hurt the wealthy. For that to be true, the wealthy would have to have a lower percentage of the

> Falling asset prices hurt the middle class far more than they hurt the wealthy. For that to be true, the wealthy would have to have a lower percentage of their net worth in non-cash assets than the middle class. That sure doesn’t seem true. Is it? > Every time asset values fall, the wealthy scoop them up How do they pay for them? If they are buying depreciated assets with depreciated assets, that’s a wash. If they are buying depreciated assets with cash … what percentage of his net worth do you think a wealthy man has in cash? This goes back to the earlier point. > If Elon Musk lost 90% of his net worth, he'd still have $34 billion. Sure, but that’s a different effect than the one you posit earlier in your post. Yes, a rich man can lose more and remain rich.

redeux 2y ago
> For that to be true, the wealthy would have to have a lower percentage of their net worth in non-cash assets than the middle class. That sure doesn’t seem true. Is it? It’s not about percentage it’s about real dollars. Your question is exactly why I included the bit about Elon’s net worth vs yours. If you lose 90% you’re destitute. If Elon loses 90% he’s still poised to win. Don’t forget the wealthy have an easy time borrowing against their non liquid assets. Then there’s companies like Berkshire Hathaway who’ve been planning for an event like this: https://companiesmarketcap.com/berkshire-hathaway/cash-on-hand/ https://companiesmarketcap.com/berkshire-hathaway/cash-on-ha...