Judge Cory Liu

District judge for civil cases in Central Texas. Adjunct Professor at the University of Texas School of Law.

[Fox News @FoxNews]

Rejected by 16 colleges. Hired by Google. Now his family’s discrimination lawsuit is moving forward.

Stanley Zhong had a 1590 SAT score, a 4.42 weighted GPA and was hired by Google as a full-time software engineer after graduating high school. His family alleges elite universities discriminated against him and other highly qualified Asian-American applicants.

A federal judge is now allowing Stanley’s Title VI claims against the University of Washington to proceed, opening the door to discovery and potential access to internal admissions documents, communications and data.

The university says it is pleased the court dismissed many of the claims and maintains its admissions process is highly competitive, particularly for out-of-state applicants.

[Ed Whelan @EdWhelanEPPC]

Very interesting piece. I wonder how much of the AI writing is added in by law clerks.

[Eric W. @EWess92]

👀What happens when a judge rules based, in part, on AI hallucinated law? Last year, Judge Wingate in the Southern District of Mississippi made waves with an AI-hallucinated order. The Fifth Corcuit asked the parties whether the case should be taken from the judge altogether

[Office of the Texas Secretary of State @TXsecofstate]

Robert Howden was sworn in by Governor Greg Abbott today as the 116th Texas Secretary of State. Under Secretary Howden’s leadership, the Office of the Texas Secretary of State will continue to focus on its mission of serving Texans and strengthening the economic competitiveness of our state.

[Robert P. George @McCormickProf]

My immigrant grandfathers came to the United States about a hundred and twenty-five years ago. Like most immigrants then and now, they were not drawn by any abstract belief in the superiority of the American political system. 1/

[The Ways of A Gentleman @Gentleman_Ways]

I just saw Young Washington, and it was outstanding!

It tells the story of George Washington's early years with a message that is both inspiring and timeless. By the end of the film, the audience applauded not once, but twice.

As we celebrate the 250th anniversary of our nation, I encourage every American to see this remarkable film. It's a powerful reminder of the courage and leadership that helped shape America.

Well done, @AngelStudiosInc . Thank you for bringing this important story to the screen.

[Judge Don Willett @JusticeWillett]

One nation in all of human history staked its existence on a single blazing truth: every soul enters this world crowned in God-given rights beyond the reach of any earthly power. 250 years later, America remains the boldest wager ever placed on human liberty. ❤️ 🤍 💙

[Evil MoPac @EvilMopacATX]

Elite "I moved to Austin in 2023 and own a private equity firm" Energy

[Hunter Williams @Hunt_Wx]

Barton Springs Pool today after the heavy rain. Video from John Gusky.

[Futbol de Inglaterra @Mercado_Ingles]

La chica Coreana que recibió burlas por sus rasgos faciales por un Mexicano, resultó siendo una influencer de Corea, se viralizo tanto este suceso, que el mexicano llamado Ulises Bernal fue obligado a renunciar de su trabajo y subir un video público pidiendo disculpas por el hecho.

La influencer llamada Ino Cat:

“En el mundo hay personas extrañas, pero me di cuenta de nuevo de que hay muchas más personas buenas en el Mundial. ♥️🌎⚽️”.

[Crémieux @cremieuxrecueil]

This is a major victory for the country.

Disparate impact doctrine has been a blight on America for decades, and it's finally being snuffed out.

Affirmative action is an evil institution that must be gotten rid of entirely, and this administration is committed to that goal.

[marshall @marshallgeyer]

new third place just dropped

[marshall @marshallgeyer]

the wishbone bridge by the longhorn dam is opening finally 👌

ribbon cutting event on sat 2/7 (10a-12:30p) with live music/food trucks/etc

[Aakash Gupta @aakashgupta]

Actually, housing is still an awesome investment.

Let me explain.

That chart is missing leverage + tax benefits.

Let’s walk through the math step by step.

You want to buy a $1M home. You put 20% down. That’s $200K out of your pocket. The bank lends you the other $800K.

The home appreciates 4% in year one. That’s $40K in appreciation. But you only invested $200K of your own money. So your return on equity is 20%, not 4%.

Now take that same $200K and put it in the S&P 500. At 9% annual returns, you make $18K.

Same capital. The house generated $40K. The stocks generated $18K. The house wins by more than 2x.

This is leverage working in your favor. You control a $1M asset with $200K. The appreciation happens on the full $1M, but your denominator is only $200K.

Now layer in the tax advantages.

You’re paying 6% interest on $800K. That’s roughly $48K in mortgage interest during year one. If you’re in the 37% federal bracket, you can deduct that interest. That puts $17,760 back in your pocket. Your effective borrowing cost drops from 6% to about 3.8%.

Property taxes are also deductible up to the $10K SALT cap. In many states that’s another few thousand in tax savings.

Now here’s where it gets interesting.

When you sell stocks at a profit, you pay 15% to 23.8% in long-term capital gains tax. No exceptions.

When you sell your primary residence, the IRS gives you an exclusion. If you’re married and lived there two years, you can exclude $500K in gains from taxes. Completely tax-free. If you’re single, it’s $250K.

No equivalent exists for equities. None.

Let’s run a 10-year scenario.

You buy that $1M home with $200K down. It appreciates 4% annually. After 10 years, the home is worth $1.48M. Your gain is $480K. You sell, take the exclusion, and pay zero federal tax on the gain.

Your friend puts $200K in the S&P. It compounds at 9%. After 10 years, they have $473K. They sell and owe $54K in long-term capital gains tax at 20%. They keep $419K.

You kept $480K tax-free. They kept $419K after tax. And you had a place to live the entire time.

But wait. There’s more optionality in real estate that stocks don’t offer.

If you convert your home to a rental before selling, you can use a 1031 exchange. This lets you roll your gains into another investment property and defer taxes indefinitely. Your $480K in gains moves into a bigger property. No tax event. You can keep doing this your entire life. Some people die with millions in deferred gains that pass to heirs at a stepped-up basis.

Try doing that with Apple stock.

You can also depreciate rental property on a 27.5-year schedule. This creates paper losses that offset real cash flow. You collect rent, but the IRS lets you report a loss.

Stocks offer no depreciation shield.

Now consider forced appreciation. You buy a dated home, renovate the kitchen and bathrooms for $50K, and add $150K in value. You created $100K in equity through sweat and decisions. Stocks don’t let you do that. You can’t renovate your way to a higher share price.

The chart shows S&P 500 at 7000 vs median home prices around 2000, indexed from 1970.

What it doesn’t show is that almost nobody buys a home with 100% cash. The comparison treats real estate as an unleveraged asset class. It ignores that a 4% return on a 5x leveraged asset generates 20% returns on equity. It ignores tax deductions that reduce your borrowing cost. It ignores the primary residence exclusion. It ignores 1031 exchanges. It ignores depreciation. It ignores forced appreciation.

The tweet asks why people take 6% mortgages when renting is cheaper and they could earn 9% in stocks.

Because $200K in a home generates more after-tax wealth than $200K in equities over a 10-year hold in most appreciating markets.

Housing can be an amazing investment (if you get the right land in the right market at the right price).

[Judge Cory Liu @coryliu]

Happy New Year from Austin, Texas!

[Raphael Rashid @koryodynasty]

1/ A Korean security guard has been acquitted on appeal after nearly 2 years of prosecution for eating a Choco Pie and custard cake worth less than $1 from an office fridge during night shift.

39 colleagues testified they'd done same for decades without issue.

[emma fibbing @greedofreewifi]

my wife packed me a tonkatsu bento with kimchi, pan, and furaido potato with barley tea on the side :3 love her so much (^^)

[Raffi Melkonian @RMFifthCircuit]

Judge Willett (joined by judge Duncan) argues the Commerce Clause may not authorize the felon-in-possession ban, 922(g)(1). Circuit precedent forecloses the argument, so it’s just a concurrence.​​​​​​​​​​​​​​​​

https://t.co/Lk5UYhQNyK

[Joe Gebbia @jgebbia]

Moved to ATX five years ago and found boomtown energy with bright people. Only gotten better since. Long on Austin.