Trump lovefest with Mamdani continues...

[QP!]

If the value of those assets is not fixed, then how do you actually know what they're worth? Real Estate is that way. Its value can only be determined when it sells. It can be estimated, guessed at, but is not actually known until that happens.
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No.

What you are arguing is that a person can claim to be rich by borrowing one million dollars to buy a piece of art they consider under valued that costs them just over one million and leaving them broke at the conclusion of the purchase.

They are NOT rich simply because they bought and own a painting for 1 million all with debt because THEY MIGHT sell it for more in the future.

One day they CAN be rich if it works out for them but until then if the debt exceeds the asset value they are not rich.

Again pointing to what I always say is your fundamental inability to understand economics.

As a bank manager you are arguing you would turn down their guy with no assets and no debt but fund that same guy, as you determined him rich, if he goes out and buys with debt an asset that is less than his total debt owed.

You would be a failure as a bank manager and your arguments would get you fired, rightly

 

[QP!]

To be clear for anyone reading this what Terry is saying is that if you borrow 1.1millon dollars to buy a million dollar piece of art and pay the commissions, then if you believe that art will sell for much more in the future Terry is arguing you are rich because we cannot know what you might sell it for in the future and it MIGHT be a lot more.

Thus Bill Clinton and others who had more debt than asset value were rich by Terrys logic, or lack thereof.

Terry is saying because we do not know what it will eventually sell for you the classification of being 'rich' until it sells as that is merely subjective.

He just hand waves away that the person is considered under water in that investment based on purchase price and debt owed as if that is not the key consideration until it is sold for a profit or loss in the future.

Terry argues that as his economic theory.