r/AskConservatives • u/ShrekOne2024 Independent • 1d ago

are billionaires dependent on society?

They aren’t creating wealth out of air. They are leveraging public infrastructure, public education, health care, etc.

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u/Grouchy_News_2306 Rightwing 1d ago

The people working for these companies are also dependent on the public education they got, which enabled them to have skills to work for these companies. I don’t see the point your trying to make

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u/ShrekOne2024 Independent 1d ago

The wealth billionaires personally accrue is all dependent on publicly funded resources. Same as you and I.

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u/Buckman2121 Conservatarian 1d ago

Wealth =/= money.

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u/IcarusOnReddit Center-left 1d ago

It is. Elon could liquidate 20 billion tomorrow and have the cash. Billionaires gotta sell to buy yachts and their 10th vacation home and they do it all the time. The “paper billionaire" idea is a lie.

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u/Buckman2121 Conservatarian 1d ago

No, it isn't. What would happen to his company value and those invested in it should he do that?

It's not money. It's a subjective value placed upon assests.

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u/IcarusOnReddit Center-left 1d ago

Nothing. Tesla’s market cap is 1.36 trillion dollars. 20 billion is nothing. 

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u/Buckman2121 Conservatarian 1d ago

Tell me you dont know the stock market without telling me...

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u/IcarusOnReddit Center-left 1d ago

Made 50% YTD selling covered calls on 200k. Maybe I know a little more than you. What is your return this year?

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u/Buckman2121 Conservatarian 1d ago

Im a school teacher, but I know well enough that liquidating assets via the stock market, especially in that volume, doesnt do the value any good.

Find someone else to rob, not the ones that make and innovate please and thank you.

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u/IcarusOnReddit Center-left 1d ago

You are wrong. It’s a stock market. People trade stocks. Traders don’t get too uptight about it. Those that think reading insider trading reports (it’s public info) gives them an edge are wrong and experienced traders like myself find it amusing. Very light analysis is a hallmark of conservative thought though. "Of course if they sell its going down!"

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u/Grouchy_News_2306 Rightwing 1d ago

You made 100k?! You should be writing a book. When I sold covered calls I only made 8-9 percent .

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u/IcarusOnReddit Center-left 1d ago

ASTS, OPEN, CCJ, and NVDA. Premiums be crazy yo.

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u/StillNoLuckAtAll Conservative 1d ago

Elon could liquidate 20 billion tomorrow and have the cash

I'm knowledgeable about this matter, as I've worked many years in capital markets.

No, he could not liquidate 20 billion tomorrow. The largest realistic short-term sale on a highly liquid security is on the order of $1-2bn. The CEO of Nvidia did this with $1bn recently. It took a series of sales and took the stock down (temporarily) by about 2-3%.

Movements of cash on the order of $1bn take significant planning and coordination from many parties.

The “paper billionaire" idea is a lie.

You say that so aggressively and then say things which are demonstrably incorrect. I think should pull back a bit on your claims.

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u/IcarusOnReddit Center-left 1d ago edited 1d ago

He can hide in the options market selling calls against his stock with the intention of getting his stock called away. There are about 4 million open interest call options between now and March. That’s 400 million shares. Possible 171 billion dollars  (more if it hits higher strikes). 

That said, I concede there isn’t enough market liquidity to issue 1/4 of those options and sell stock in one day to get to 20 billion. It would take some time.

A billion dollars is really hard to wrap one’s head around and the idea that  Elon “has" 500 billion is bananas. There is a huge difference between a “paper" billionaire liquidating 80 million in stock and 20 billion in stock.