this post was submitted on 31 Oct 2023
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To put this in perspective, they lost an average of $2B per month in value. According to HUD, there were about 582,000 homeless people in the US last year. $2B per month is enough to house all of them nearly 4 times over if you assume $1k per month in housing expenses.
What a monumental waste of resources that could have made a difference. Musk just sucks
It's not real money, though. It's all just speculative value based on estimates of future revenue.
The real barrier to ending homelessness is the large number of real estate vacancies that are held open to prop up the price of the housing market. Twitter's lost value has nothing to do with that.
There is no "real" money. It's all speculative based on what value people assign to it. For example, you may have noticed that the US dollar has become worth significantly less in recent years. Shares and fiat currency just have different volatility.
The US dollar has outpaced nearly every other global currency. Five years ago you'd get 100 yen to the dollar. Now you get 150.
But cartelization of the supply chain means we don't get to see the benefits of low import prices. The difference all goes to business profit, while real increases in material and labor get passed on to the consumer.
Netflix buys anime for pennies on the dollar and sells it back at escalating rates. They spend less and we pay more.
The US dollar was just an example so this discussion is tangential to the point I was trying to make. That said, your argument does not support an increasing value of the dollar - it only says it has increased in value relative to other currencies. But I'm sure you know that inflation has been staggeringly high which means you get less food on the table for a dollar, and salaries have not been keeping up.
Or put in other words, if you were to invest in US dollars instead of shares then you would have seen the value of your portfolio going down, in terms of what it can get you at Costco.
Increase in exchange value means the cost of imports fall.