I narrate key points in my post “We’re Actually Only ‘Renting’ What We Think We ‘Own’”
This confusion about what we actually "own" becomes visible when asset bubbles pop. As an asset bubble inflates, we naturally feel we "own" wondrously expanding wealth. But actually all we own is the stock shares or the house or the futures contract. Since the market valuation is set by conditions outside our control, we're only "renting" the market valuation via our ownership.
Once the bubble pops, our great wealth has vanished, even though we still "own" the asset.
Buying assets with borrowed money generates additional slipperiness. As long as our liability / debt remains lower than the market value, our ownership has monetary value. But should the bubble pop and the market value drop to the point that our debt / liabilities exceed the market value of the asset, then it's revealed that we only "rented" the monetary value, because the conditions that set that value are outside our control.
We're Actually Only "Renting" What We Think We "Own"
What we “own” seems straightforward, but it’s actually slippery. Yes, we own what we have a deed or copyright for, but we only “rent” the valuation the market assigns to what we own.
