You know the saying: “if you owe 100 to the bank, then you have a problem, but if you owe 1 000 000 to the bank, then the bank has a problem”
For a regular person, this translates into being able to pay off 100 by working hard, but owing 100 000 is a lot harder to work off, so they’ll need alternative solutions, like selling the car.
Financially speaking it’s the difference between a profit/loss statement and a balance sheet. Once you have enough money, P/L doesn’t matter in comparison to the balance.
Someone like Elon Musk stating that he doesn’t have any money to pay is playing on this. He’s all balance and no profit.
The consequences increase.
You know the saying: “if you owe 100 to the bank, then you have a problem, but if you owe 1 000 000 to the bank, then the bank has a problem”
For a regular person, this translates into being able to pay off 100 by working hard, but owing 100 000 is a lot harder to work off, so they’ll need alternative solutions, like selling the car.
Financially speaking it’s the difference between a profit/loss statement and a balance sheet. Once you have enough money, P/L doesn’t matter in comparison to the balance.
Someone like Elon Musk stating that he doesn’t have any money to pay is playing on this. He’s all balance and no profit.