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Reason: grammar fix

My apologies, I will try to clarify.

When you get mega wealthy, you don't really keep a lot of cash on hand (relative to your total wealth at least). Instead, they invest a variety of different things. Loans, stocks, real estate, cars, politicians, whatever.

When someone like Blackrock goes to buy something, that means they generally have to use cash up front, sell assets to get the cash, or go into debt to fund it. This money they can access through those means within a short amount of time is generally considered "liquid" to oversimplify.

So what I'm saying here is that they committed a lot of their resources, which were already depleted from 2020, by investing in real estate, which is typically a less liquid asset (since they're the only ones really buying a lot right now). In other words, they're left holding the bags on all of this land no one else wanted to buy, AND they would have to likely take a major loss on to sell anyways. It's pretty karmic in that sense.

In simplest terms, they blew their financial load and made a bad call and now they're likely in a bad place, which is why Ukraine became a thing for them.

Does that help?

1 year ago
2 score
Reason: Original

My apologies, I will try to clarify.

When you get mega wealthy, you don't really keep a lot of cash on hand (relative to your total wealth at least). Instead, they invest a variety of different things. Loans, stocks, real estate, cars, politicians, whatever.

When someone like Blackrock goes to buy something, that means they generally have to use cash up front, sell assets to get the cash, or go into debt to fund it. This money they can access through those means within a short amount of time is generally considered "liquid" to oversimplify.

So what I'm saying here is that they committed a lot of their resources, which were already depleted from 2020, by investing in real estate, which is typically a less liquid asset (since they're the only ones really buying a lot right now). In other words, they'll left holding the bags on all of this land no one else wanted to buy, AND they would have to likely take a major loss on to sell anyways. It's pretty karmic in that sense.

In simplest terms, they blew their financial load and made a bad call and now they're likely in a bad place, which is why Ukraine became a thing for them.

Does that help?

1 year ago
1 score