To clarify the intent of my original content, I'm referring to wealth vs income with regards to the obscenely wealthy. As you've pointed out, risk is generally very low for billionaires. The ELOCs that they utilize for credit have very generous terms as the sheer amount of assets all but guarantee that the debt can be serviced.
What I'm trying to get at is that while the distinction of wealth and income is very palpable for wage earners such as myself, it is less so for billionaires. Throughout my life my wealth will consist mostly of my primary residence and retirement portfolio. I can't really use that for my day to day consumption. But if a billionaire can get an ELOC against a portion of their stock portfolio and use it to purchase yachts, cars and whatever tickles their fancy then their wealth enables behaviour that renders the lack of liquidity irrelevant.
What I'm trying to get at is that while the distinction of wealth and income is very palpable for wage earners such as myself, it is less so for billionaires. Throughout my life my wealth will consist mostly of my primary residence and retirement portfolio. I can't really use that for my day to day consumption. But if a billionaire can get an ELOC against a portion of their stock portfolio and use it to purchase yachts, cars and whatever tickles their fancy then their wealth enables behaviour that renders the lack of liquidity irrelevant.