Tell HN: Musk doesn't "have" a Trillion, he has the leverage

ggm2 pts0 comments

I wish a competent economist could blog that Musk (and the other uber rich) don t have liquid cash to pile up on their yacht the way the graphics imply.Even the act of selling his stake in tesla and X and spacex would alter the value of the holdings, alter the tax income for some nation state, the act of printing the money would in turn demand time and effort, shipping the money would incur costs.Having the effective influence over investment disposition of $1T is amazing but it isn t actually the same thing qualitatively as one trillion dollars nor is it just a quantitative function over 1 million dollars . Because it s 1/30th of the entire US economy (around $30t) and so materially alters 3% of the value of the US working capital, and a little over 1% of the entire US stock market)In order to have the money he d create an instant liquidity crisis. He d hoover up all the share trading cash, and so would instantly devalue all the other stocks. It would be a massive event.

quot money musk trillion cash alter

Related Articles