Similar to the sibling comment, I would also appreciate explanation.
Also, (for others who also missed it) I didn't understand the terms source and sink. this is what google gave me: "Sinking and Sourcing are terms used to define the control of direct current flow in a load. A sinking digital I/O (input/output) provides a grounded connection to the load, whereas a sourcing digital I/O provides a voltage source to the load."
Accounting (in the corporate sense; I kind of tripped trying to translate to a personal finance context) is based on one equilibrium principle:
assets = liabilities + equity
This is true by definition. So any increase in assets has to be backed either by an increase in liabilities or an increase in equity. I tried to compare this increase in equity to income (the change in "what you're worth") but muddled the issue a bit.
I happen to agree with Kiyosaki's position that a house is a bad investment ceteris paribus (millions of details apply, specially the country/city you live in, but also your own life cycle, etc.).
But it's not because it belongs to the liabilities bucket. It's because to acquire a house (an asset), you have to take on debt (a liability). Or pay down from your personal equity/personal worth, if you're rich dad and happen to be sitting in that much money.
To simplify: if equity was not to enter the equation, the sum total of your assets would be equivalent to the sum total of your liabilities. How else would you acquire things if not from debt?
Also, (for others who also missed it) I didn't understand the terms source and sink. this is what google gave me: "Sinking and Sourcing are terms used to define the control of direct current flow in a load. A sinking digital I/O (input/output) provides a grounded connection to the load, whereas a sourcing digital I/O provides a voltage source to the load."