musk was mouthing off in an official enough way that he got trapped into buying it. He lost tens of billions. It was basically a money pit and he has drove it to even more of a money loser.
Except he doesn’t really have unlimited money. Like most rich bastards he had assets - aka, hypothetical money (investments). They take out loans using that hypothetical money as collateral, and then have to pay that money back over time, which they can do by earning dividends (hypothetical money increases that they can access without penalties) or selling hypothetical money for real money (possibly with penalties).
Musk borrowed an enormous amount of money, which saddled the loaners with hypothetical money that began to decrease in value, and were this unable to profit by selling it for actual money. They therefore have to trust that Musk will repay these loans or else sell them at a loss to some other dumb bastard.
Doesn’t seem like he lost much, like you would expect by buying one of the biggest social platform in the world he got even richer and more relevant (enough to get a sit in the white house)
musk was mouthing off in an official enough way that he got trapped into buying it. He lost tens of billions. It was basically a money pit and he has drove it to even more of a money loser.
He has unlimited money. I am pretty sure he doesn’t really care.
Except he doesn’t really have unlimited money. Like most rich bastards he had assets - aka, hypothetical money (investments). They take out loans using that hypothetical money as collateral, and then have to pay that money back over time, which they can do by earning dividends (hypothetical money increases that they can access without penalties) or selling hypothetical money for real money (possibly with penalties).
Musk borrowed an enormous amount of money, which saddled the loaners with hypothetical money that began to decrease in value, and were this unable to profit by selling it for actual money. They therefore have to trust that Musk will repay these loans or else sell them at a loss to some other dumb bastard.
Or be forced to sell assets to pay his debts.
Doesn’t seem like he lost much, like you would expect by buying one of the biggest social platform in the world he got even richer and more relevant (enough to get a sit in the white house)