Don’t worry, he seems hard at work making sure all that Tesla stock he got will also be worth less everyday.

In case you are wanting the history. IBM actually coined the term PC with their IBM Personal Computers

At the time most computing platforms were incompatible. Software written for a commodore computer wouldn’t work with an apple computer wouldn’t work with an IBM PC.

The IBM PC was popular enough though that people started building “pc compatible” machines. A very popular configuration for this was intel chips with Microsoft DOS. While these machines started out as “pc compatible” after a while the IBM PC wasn’t a big deal anymore so saying “we are compatible with a machine released in 1981” just slowly morphed into “it’s a PC” as shorthand for “intel chipset with Microsoft OS”

Now why didn’t apple get the pc moniker? At the time when the IBM PC launched apple was actively building and selling their own computers and weren’t interested in making them IBM PC clones so they never went out and marketed themselves as “pc compatible” because for the most part they were not.

Thanks for attending my Ted talk

“Perfect” as the steak knives jut at random angles.

This take up so much more space than a butcher block and I’m sure those holes are going to smell great after a few months of crumbs mix with wet knife drippings in the dark zone beneath the counter. Luckily it’s completely inaccessible to any kind of cleaning.

Eventually they do need to pay back the loan, the low interest rates just make it so that they can choose to sell their stocks in the most favorable way.

This is why it makes sense for the financial institute to give out the loan in the first place.

So here’s the scenario. Let’s say you wake up tomorrow and somehow find yourself with $200M worth of stock. You are now “worth” $200M so you’d like to start living like it! You want to go buy a mansion and a nice new car and a private chef. Problem is, none of those people take stock, they all want money.

Goldman Sachs goes, “hey, I’ll loan you the money really cheap, you have to pay me back with interest, but since you have $200M in stock you can sell some of that later and pay me back”

This is great for you because you get to enjoy the mansion and new car and private chef right now. If you sold the stock right now you’d get taxed as if it were income at 38% but if you hold the stock for a few years when you sell it it will be considered capital gains and only taxed at 10% (or 15%, whichever the rate is). In addition, you don’t have to go to the stock market and sell for whatever they want right now, you can wait until the value of your stock is really high and selling is very advantageous for you.

So you do have to pay back the money, but this is still a really sweet deal because you can enjoy all the nice things right now and you get to avoid that extra ~30% you would pay in taxes if you sold it right now.

As long as the amount you saved in taxes outweighs the amount you pay in interest, this is a great deal for you. And for the financial institute it’s low risk (they extended you $10M backed by $200M in assets) and when you repay they make back enough in interest to make it worthwhile.

You get more money in your pocket, the bank gets more money in its pocket, from their point of view this was a win win. The losers are the market suffering a higher price for the stock because the supply was artificially constrained by you having access to this credit (otherwise you’d have sold shares to buy a mansion and nice car and private chef) and the taxpayer who was to shoulder a heavy tax burden because you converted your income into capital gains.

The one thing that definitely isn’t happening is Bezos or Musk or any of these other “they are only rich on paper” people clipping coupons to make ends meet. They live like rich people because the have access to plenty of money secured by their less liquid assets

For anyone that’s fallen for the “{wealthy person} doesn’t actually have ${huge number} because it’s stock” thing, here’s how it works.

1. Wealthy people with lots of stock get access to very, very cheap credit. Not credit cards like the plebs get with a 23% APR, multi million dollar lines of credit from places like Goldman Sachs with hyper low interest rates.
2. Wealthy people use that credit to live indistinguishably from a person that actually has the vast wealth that they have access to. Spez might “only” make $400k but if he has access to $50M in cheap credit it spends all the same.
3. Wealthy people enjoying their access to cheap credit which spends the same as income then get to dodge income taxes and instead use the more favorable capital gains tax rates.
4. As a fun bonus, they also get to go “you morons I don’t have $200M that’s all just on paper, I only pay myself $10 a year because I’m a man of the people. Now if you’ll excuse me I have to get on this private jet”

You might be wondering, why do they get this cheap credit? Because it’s a very safe bet for the financial institute, they are acting as a sort of time arbitrage mechanism for the person they are extending credit to. Since they perform this function they can be relatively assured that this will allow their client to sell their stocks, not because they have to cover expenses, but because capital gains protections and the market is favorable. It also aids in fostering a positive relationship with someone with a lot of wealth which is something financial institutes have an interest in doing.

All the actors are doing what’s in their rational self-interest. The end result is that Spez can access a large part of that $200M as liquid cash right now through credit with one hand and with the other wave you off and say “those are stocks I actually only got paid $400k”

I’d consider your fear to be rational, although others might disagree.

Governments, by their nature, hold a monopoly on the “legitimate use of violence.” That’s a pretty terrible power to abuse and the best systems we have for holding power in check is to diffuse it into many people and set those people somewhat at odds with each other, aka, checks and balances.

I would consider J6 to be a failed coup, and coups are often about consolidating power into fewer and fewer hands, purging groups at odds with a strong man leader, which is fertile ground for abuse of power.

Now though you have to decide what to do with that fear. You have to decide how you want that fear to be a part of your life. Fear exists to tell us of danger, it’s our limbic system telling us to pay attention. You get to decide now if this danger is real and if living in fear is appropriate.

There are many reactions to fear, but I’ve found that positive action and mental health support are good responses to fear.

As an example, I struggle with anxiety, and it sucks because when you are anxious about something it’s common to avoid it and then you never fix it so it makes you more anxious and then you avoid it more, repeat. It took mental health support in the form of therapy and anti anxiety medicine to give me the tools I needed to start taking positive action that started tackling the things causing me anxiety. Now though, much less anxiety, the things that made me anxious weren’t helpful, it wasn’t helpful to my life to be constantly worrying about things I could address once I wasn’t constantly worrying.

Fear is a difficult emotion to live with day in and day out. Perhaps there are positive actions you can take to help address these fears, run for office, vote, volunteer for candidates you believe in. I know that therapy was helpful for me in understanding why I feel what I feel and how to make healthy choices around those feelings.

I hope you find some measure of peace though, you aren’t alone. I share your concerns, and many other people do, and I’ve decided to work my hardest to prevent it since that’s all I can do. History is full of assholes trying to fuck shit up for their own benefit and decent people unfucking that shit up.

One thing to consider when you constantly feel something is “why?”

Why are you constantly afraid of the government?

Fear is our response to danger, it motivates us to take actions to protect ourselves. Fear in the presence of danger is normal, fear in the absence of danger is not a tremendously helpful emotion. The hard part now is really truly identifying why you fear the government.

Your first reaction might be to start listing grievances, the direct reason you fear the government. This could range from reasonable concerns, “they have a monopoly on the legitimate use of violence and use that monopoly to attack me physically,” to less reasonable concerns like “they are lizard people.”

I’d invite you though to try to not stop at the list of grievances and interrogate “why” you believe that grievance is real.

Consider these two examples.

I fear the government because the police beat me up. I fear being beaten up because physical violence is painful and living without physical safety is truly dangerous. My fear is likely a reasonable response.

I fear the government because they are going to join in a new world order where the satanists and the the blue-eyed people are plotting to turn us all into Babylon 5 fans by putting sriracha in the public water supply. I fear this because I’ve watched several thousand hours of YouTube videos be people that have convinced me of this plot. The people making these videos are trustworthy because… hmm… they say they are. The people making the videos make money by me watching their videos and buying their merchandise because I believe in them. I believe in them because they claim to have the only way to keep me safe from this danger I’m very afraid of. Uh oh, this fear is irrational and being fed by people that profit off me always being afraid.