Essential Economics for Politicians

[Hüsker Dü]

Define asset.

Go ahead, you first.

 

[Bruddah IZ]

Go ahead, you first.

Puts money in your pocket. Does your house do that?

 

[Bruddah IZ]

On a personal balance sheet to determine net worth, the estimated resale value of your home goes on the asset side, and the remaining mortgage balance(s) on the debit side.

https://www.moneymanagement.org/Bud...lance-Sheet-and-Determine-Your-Net-Worth.aspx

Black and red.

This is for net worth calculation only. The items above are assets on the lenders balance sheet and therefore cannot be a revenue generating asset on your personal balance sheet as well. No arguments about the liabilities.

 

[Bruddah IZ]

Pretty simple, something we were taught in grade school.

Something like this

 

[Bruddah IZ]

Depends on how well you know and can take advantage of the system.

Like I said, black and white.

 

[Hüsker Dü]

Puts money in your pocket.

Wrong.

 

[Hüsker Dü]

Something like this

Why under Assets do you think it lists Real Estate?

 

[Bruddah IZ]

Wrong.

Your turn

 

[Bruddah IZ]

Why under Assets do you think it lists Real Estate?

Beacause it generates "income" above, unlike your mortgage under "expenses".

 

[Hüsker Dü]

Beacause it generates "income" above, unlike your mortgage under "expenses".

You are assuming there and then assessing off of a possibly false assumption.

 

[Hüsker Dü]

Your turn

as·set
noun
plural noun: assets
a useful or valuable thing, person, or quality.
"quick reflexes were his chief asset"
synonyms: benefit, advantage, blessing, good point, strong point, selling point, strength, forte, virtue, recommendation, attraction, resource, boon, merit, bonus, plus, pro
"he sees his age as an asset"
property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
"growth in net assets"
synonyms: property, resources, estate, holdings, possessions, effects, goods, valuables, belongings, chattels
"the seizure of all their assets"
military equipment, such as planes, ships, communications and radar installations, employed or targeted in military operations.

 

[Bruddah IZ]

You are assuming there and then assessing off of a possibly false assumption.

Would you consider an expense an asset?

 

[Bruddah IZ]

as·set
noun
plural noun: assets
a useful or valuable thing, person, or quality.
"quick reflexes were his chief asset"
synonyms: benefit, advantage, blessing, good point, strong point, selling point, strength, forte, virtue, recommendation, attraction, resource, boon, merit, bonus, plus, pro
"he sees his age as an asset"
property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
"growth in net assets"
synonyms: property, resources, estate, holdings, possessions, effects, goods, valuables, belongings, chattels
"the seizure of all their assets"
military equipment, such as planes, ships, communications and radar installations, employed or targeted in military operations.

Given the above, would you consider your mortgage an asset (income) or an expense (liability)?

 

[Hüsker Dü]

Given the above, would you consider your mortgage an asset (income) or an expense (liability)?

Asset

 

[Bruddah IZ]

You are assuming there and then assessing off of a possibly false assumption.

I am assuming that you know the difference between your income and the sources of that income, as opposed to expenses and the sources of those expenses.

 

[Bruddah IZ]

Asset

Do you have a reverse mortgage?

 

[espola]

Asset

You're wasting your time.

 

[Bruddah IZ]

You're wasting your time.

That is also an expense. Heʻs probably pondering cash flow.

 

[Bruddah IZ]

The silence is deafening.

 

[Hüsker Dü]

You're wasting your time.

I never really paid attention to the financial deficit disorder that afflicts Izzy, just took your word for it, now I see.