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economicslol commented on Fed’s Balance Sheet Exceeds $7T for First Time in History   thesoundingline.com/feds-... · Posted by u/baronmunchausen
trcollinson · 6 years ago
Brilliant analysis. Thank you for your insightful words.

In reality, there are very few economists who believe that a company should have 6 months of expenses in the bank for emergencies. I realize you are probably about to explain to me how those economists are wrong and companies are wasteful and whatnot. Frankly, they have their reasons and their reasons aren't do bad.

More importantly, most companies are not spending their money on frivolous things, like avocado toast. This isn't an HBO shocking sitcom/drama. Do companies make mistakes with their money, of course. But in my experience working with VC's, most companies are using all of their money on either marketing and sales, or R&D. Period. Maybe a bit on parties and morale but by percentage, 99% goes to sales and marketing or R&D. Large companies, on the other hand, spend their cash on all sorts of other things. Huge amounts of cash have still gone into sales and marketing, R&D, but also stock buy back, and investment.

economicslol · 6 years ago
Was the avocado toast bit above your head or are you just generally oblivious to sarcasm?
economicslol commented on Fed’s Balance Sheet Exceeds $7T for First Time in History   thesoundingline.com/feds-... · Posted by u/baronmunchausen
tossmeout · 6 years ago
You'd make your point more effectively using logic and reasoning rather than an emotional outburst. Otherwise, as a genuinely curious reader looking to learn from "both sides," your side comes across as motivated more by emotion than reasonable argument. Which is fine for preaching to the choir… but that's about it.
economicslol · 6 years ago
Both sides? Do you make the same argument for hearing from literal Nazis? You just need to weigh the arguments for and against the final solution? I'm not directly calling Libertarians Nazis but the analogy holds, I find very little of value from their point of view. Generally Ayn Rand type libertarians are cash worshiping dragons of the Smaug variety. Their only real contribution to discourse is about the power of markets and I think we can discard them because belief in markets is not unique to them.
economicslol commented on Fed’s Balance Sheet Exceeds $7T for First Time in History   thesoundingline.com/feds-... · Posted by u/baronmunchausen
trcollinson · 6 years ago
Yes, ordinary citizens are different. What is your point? Are you suggesting companies really should keep 6 months of operating capital in the bank? Can you even imagine what would happen to the economy at that point.

The US GDP last year was $21 Trillion dollars. The gross revenue was about $2.1 Trillion dollars. This is all back of the envelope math but imagine if 50% of the difference between those numbers was the operating cost in the US of 6 months, or about $9.5 Trillion dollars. If we take that money out of the market and put it into a bank for a rain day fund, imagine all of the people not receiving that money. Imagine how many consumers would go down. This is all just an estimation but we are talking huge amounts of money not being put into the economy and frankly, our economy runs on consumption. Consumption doesn't happen without capital.

People should definitely safe. Have a 6 month personal supply. But companies need to spend.

economicslol · 6 years ago
You're right, the better solution is use taxpayer to bail out shitty companies that can't survive temporary economic slowdowns.
economicslol commented on Zuckerberg says employees moving out of Silicon Valley may face pay cuts   cnbc.com/2020/05/21/zucke... · Posted by u/SREinSF
username90 · 6 years ago
You can just move to any of the other big cities that have big offices. It is easier to get a job in SF, but if you are good enough you will have no problem getting a job there.
economicslol · 6 years ago
I don't understand. I agree. What is your point? We're talking about why people may not be interested in moving to the Bay Area...
economicslol commented on Fed’s Balance Sheet Exceeds $7T for First Time in History   thesoundingline.com/feds-... · Posted by u/baronmunchausen
megaman821 · 6 years ago
I don't think anything makes these businesses inefficient, just unlucky that they are disproportionately affected by shelter-in-place orders. Since the state is basically shutting down the business for the good of the populace, it seems more analogous to eminent domain. The government has taken something of value (the ability to have their business open) and should compensate these businesses partially for their losses.
economicslol · 6 years ago
So the capitalists that get massively rewarded for taking risks now get bailed out when those risks turned out bad? Sounds like BS to me.

Dead Comment

economicslol commented on Fed’s Balance Sheet Exceeds $7T for First Time in History   thesoundingline.com/feds-... · Posted by u/baronmunchausen
harryh · 6 years ago
COVID19 represents an extraordinary circumstance where otherwise perfectly healthy businesses would fail due to revenue, quite literally, dropping to zero due to an external shock.

When businesses fail and employees are fired real value is destroyed: working relationships are severed & institutional knowledge lost.

It is in all of our interests to do what we can to preserve these businesses until the external shock ends.

economicslol · 6 years ago
They should have had an emergency fund of 6 Months of expenses for emergencies. Maybe they should stop eating so much avocado toast.
economicslol commented on Zuckerberg says employees moving out of Silicon Valley may face pay cuts   cnbc.com/2020/05/21/zucke... · Posted by u/SREinSF
dlp211 · 6 years ago
Every person I work with is under 40 and everyone that wants to own a home, does. SF and NYC are not the only tech hubs in the US.
economicslol · 6 years ago
>SF and NYC are not the only tech hubs in the US.

Also confused. I agree with your point. My comment was responding to a person who couldn't imagine people who wouldn't move to SFBay for a FAANG level salary/job.

economicslol commented on The FBI tracking your browsing history without a warrant might be the beginning   cybernews.com/news/the-fb... · Posted by u/nicedicerice
shadowgovt · 6 years ago
Question wording drastically changes the results on polling whether people support the Patriot Act, but broadly speaking, it appears most Americans support its existence and most Americans believe it is in need of moderation. I don't think it's as simple as "Public opinion has no effect on policy;" it's that the policy response to "most people aren't happy, but nobody can gel behind a concrete changelist" is "stay the course."

I agree on the education question, but that's going to be a regular pattern in public polls. General public savvy on privacy issues and the power of technology to consolidate information has not kept up with technology. And, TBH, if the situation at hand is actually "Most Americans don't understand the problem well enough to articulate their wants in the context of the issue," that's a scenario where public opinion shouldn't drive policy. A democracy of the uneducated doesn't work.

economicslol · 6 years ago
https://scholar.princeton.edu/sites/default/files/mgilens/fi...

TLDR: Citizen opinions don't have an effect on policy.

I agree about education though. It's a tricky problem. Clearly people aren't informed enough to make coherent decisions on many policy issues but they have to trust that the slick looking lawyer they are voting for actually does understand and has their best interests at heart?

economicslol commented on Zuckerberg says employees moving out of Silicon Valley may face pay cuts   cnbc.com/2020/05/21/zucke... · Posted by u/SREinSF
volkk · 6 years ago
> If you remove B you've massively increased the available talent pool.

i'm not convinced this is the case. maybe by a bit...but massively? if you look at all of the places that all of the top paying FAANG companies are located--lets keep it within the US for simplicity's sake--you've got basically all of the major cities with the top talent. I'm not really picturing THAT many brilliant developers that fall under the bucket of: a) really smart and able to pass FAANG interviews b) not willing to relocate if they did get a huge offer

sure there are plenty of outliers, but my gut feeling tells me that MOST of the talent that really cares enough and wants to be at FAANG are already living in most of the tech hubs currently. i dont think the surge of competent applications will be that meaningful statistically speaking.

not sure if i communicated myself clearly here, sort of rambled.

economicslol · 6 years ago
>I'm not really picturing THAT many brilliant developers that fall under the bucket of: a) really smart and able to pass FAANG interviews b) not willing to relocate if they did get a huge offer

What about anyone that wants to own a home before they are 40? Even on FAANG salaries its very difficult to buy when millionaires are snatching up fixer uppers for $1M+ all cash.

u/economicslol

KarmaCake day39May 7, 2020View Original