The word 'broke' normally means something like 'bankrupt' or 'insolvent'. We need to distinguish between two states, which are quite different:<p>(A) Insolvent: Unable to pay for necessary outgoings (rent, food, loan payments) as they become due.<p>(B) Negative equity: The value of total liabilities (e.g. loan principal) exceeds the value of total assets (e.g. cash, bank balances, stocks, and real estate).<p>The word 'broke' is usually used to indicate (A), but Bloomberg is redefining it to mean (B).<p>Imagine I've just graduated from medical school, top of my class, and have debts of $200k that I incurred during my studies. I have $10,000 in my bank account. I have a job lined up that will pay me enough to live on, but I expect rapid rises over the next few years.<p>Would you consider me 'broke'?<p>Bloomberg would, because they'd calculate my net worth at negative $190k.