- cross-posted to:
- [email protected]
- [email protected]
- [email protected]
- cross-posted to:
- [email protected]
- [email protected]
- [email protected]
CWs: Cory Doctorow, newsletter, mentions of his upcoming book that he’s selling.
CWs: Cory Doctorow, newsletter, mentions of his upcoming book that he’s selling.
investing back and forth, forever
Feels like when banks could lend x10 times their wealth, they’d just borrow lots of money forth and back, infinite money (and a good old crash)!
This is actually kind of scary. These huge tech companies that, for better or worse, form the foundation of modern life, could collapse overnight if the chips fall a certain way.
Hehe chips.
Practically, what would the impact be?
A massive shedding of stock market wealth that triggers a recession as everyone pulls back on consumer spending since their primary retirement savings have taken a huge dip.
It would hit every good and service in every sector because the entire economy revolves around consumer spending and the consumption of goods and services. If you lose your job then good luck finding anything during a recession, as if it weren’t hard enough already. And you may not lose your job, but your employer would feel the pressure to cut costs and pump revenue. The stock market would take a few years to recover effectively adding another year or two before retirement for some people, which also has workforce implications.
Plenty of other indirect costs to you that filter through wider society and the workforce, even if nothing direct actually happens to you. Like your favorite spots reducing hours or having worse service or raising prices to make up for the drop in demand.
At the best, it would drag the entire economy down with them causing not just a recession, but more than likely full on depression. It wouldn’t just be the US either, worldwide market crashes.
Worst case? The worldwide depression makes those companies go bankrupt. Due to the market collapse, no other company is able to step in and prop them up. MAYBE governments bail them out, but then we end up with major tech not just influenced by government, but owned and run by them (see TikTok currently).
We should tax financial transactions.
We should tax securities. Stocks, bonds, and other financial instruments. Tax them, annually, in shares of the security. Let IRS liquidators auction them off over time.
Exempt any natural person holding less than $10 million worth of securities. No exemptions for artificial “persons”.
Use it or lose it.
i mean, there are no financial transactions in that quote.
I’ve seen this with M$ power contracts. Microsoft sign 10Y deals and pay a large % of their electricity costs in cloud credits.
Tautologically tautological economics