Palo Alto, California
From there, you’ll read something I’ve told you here in this space through the years: Much of the wealth of the extremely rich is illusory because of its liquidity and therefore its volatility. Mark Zuckerberg only has $51 billion because he has x number of shares of Facebook multiplied by the current per-share market price of Facebook stock. If people quit being that fond of FB stock, then Mark Zuckerberg isn’t worth $51 billion anymore. This is why Zuck is so thrown in to the cheap labor immigration agenda, because he needs his labor expenses at FB to stay as low as possible in order to impress the investors and the mutual funds executives, to keep FB’s stock value high.
The problem with Elizabeth Holmes is just as you read in the link to Steve Sailer’s article about her and her company: Too many important men drank the SJW “we need a uterus in SV” kool-aid, and that created a bubble around her which was bound to pop sooner or later. And let’s not even talk about how Michael Bloomberg got to be worth $45 billion.
But then the article ends with more normal people, and ends like this:
There’s a lesson here for normal people. The one highly illiquid asset that many middle-class people pour a huge percent of their wealth into is their house. Houses are time-consuming and expensive to sell, and if you borrow against your house you’ll have to pay interest on the loan. So houses are illiquid. This implies that many middle-class homeowners are very under-diversified because they have so much of their personal wealth tied up in residential real estate.
In other words, your house is a little bit like Elizabeth Holmes’ stock in her own company. On paper it might be worth a lot, and much of that does reflect real value. But if your local housing market crashes, your net worth is in big trouble. I think more people should consider that before making the decision to buy instead of rent.
My bet is that the author of this article and perhaps a few sympathetic-to-“normal people” editors at Bloomberg are trying to dog whistle to “normal people” not to tie too much up in an owned house, because the Federal government is about to cram jam some AFFH apartment complexes full of black ghetto formerly urban Section 8/AFFH clients in your subdivision.