The Business/Finance/Economics Thread | Page 33 | Vital Football

The Business/Finance/Economics Thread

It looks like Musk is trying to back out of the Twitter deal. People who know better than me reckon the deal makes no sense.

I can't get a handle on Musk. Is he a genius, an attention whore, a bit of both or something else entirely?
 
BodyButter said:
It looks like Musk is trying to back out of the Twitter deal. People who know better than me reckon the deal makes no sense.

I can't get a handle on Musk. Is he a genius, an attention whore, a bit of both or something else entirely?
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I dunno. He tried to make a lot of dumb decisions at PayPal and they removed him from the decision making process as a result. The money he made from it's sale had little to do with his genius and more Peter Theil's smarts. Musk happened to be a big shareholder.

Tesla seems to be extremely successful though... Space X seems kind of dumb to me.

The worst thing about him are his idiotic fanboys though.
 
Musk must be the only person on the planet who can get away with inserting chips into monkeys and killing them, whilst at the same time killing people when self driving testing cars on the road, yet if that was any other company there would be uproar.

I’d like to ask my MD who drives a Tesla what he thinks of the monkey business Musk is into, as to me it’s unethical.

It’s a difficult one because it is technological progression and many a person and a monkey will have died to get to where we are now.

I can’t make him out either but he does seem a bit of a James hunt to me without having researched him in any detail.
 
If people struggle to afford things then demand will drop off in the economy, expectations around this will cause stocks to tumble.

The interest rate picture is interesting. Lots of talk of sharp rate rises to come in the summer. I'm very interested in the proposed mechanism here. When I studied macro the theory was that when there's high in inflation rates should rise to cool down the economy, when inflation is low rates should lower to kick start things more. I'm seeing some economists parrot this sort of theory today. The thing is though is that a lot of this theory revolves around growth. A hot economy can see inflation rocket so the rate rise will dampen this...

However we hardly have a hot economy, inflation is driven by shocks to energy prices and the downstream effects of that rather than the economy doing 'too well'. So I can actually see some monetary policy blunders on the horizon. Whilst I firmly believe rates have been set far too low for far too long I don't see how rate rises will benefit given where we are actually heading.
 
Pangloss said:
If people struggle to afford things then demand will drop off in the economy, expectations around this will cause stocks to tumble.

The interest rate picture is interesting. Lots of talk of sharp rate rises to come in the summer. I'm very interested in the proposed mechanism here. When I studied macro the theory was that when there's high in inflation rates should rise to cool down the economy, when inflation is low rates should lower to kick start things more. I'm seeing some economists parrot this sort of theory today. The thing is though is that a lot of this theory revolves around growth. A hot economy can see inflation rocket so the rate rise will dampen this...

However we hardly have a hot economy, inflation is driven by shocks to energy prices and the downstream effects of that rather than the economy doing 'too well'. So I can actually see some monetary policy blunders on the horizon. Whilst I firmly believe rates have been set far too low for far too long I don't see how rate rises will benefit given where we are actually heading.
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The US labour market is overheating. If they relaxed controls on the southern border, that would encourage a lot of immigration and cool down the market but that's politically unpopular. They could even start giving people migrant visas and allow them to fly into the country legally but that seems too humane for some. Anyway, I'm going off on a tangent here. The US needs higher interest rates, the rest of the world doesn't but we'll follow the US blindly because that's what we do.
 
BodyButter said:
The US labour market is overheating. If they relaxed controls on the southern border, that would encourage a lot of immigration and cool down the market but that's politically unpopular. They could even start giving people migrant visas and allow them to fly into the country legally but that seems too humane for some. Anyway, I'm going off on a tangent here. The US needs higher interest rates, the rest of the world doesn't but we'll follow the US blindly because that's what we do.
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Yes in fairness I was thinking entirely about the UK rather than the yanks.
 
BodyButter said:
More selling on the US markets last night. Fasten your seatbelts.
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My accounts have been getting obliterated but I just keep making small adds. I only own 4 individual stocks now CROX, GOOG, GOGO and ONDS. 401k is 80% S&P500 and then 10/10 medium and small business.
 
CDX_EIRE said:
My accounts have been getting obliterated but I just keep making small adds. I only own 4 individual stocks now CROX, GOOG, GOGO and ONDS. 401k is 80% S&P500 and then 10/10 medium and small business.
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Ouch on CROX. You are right though, buy the dip and all that. As long as you believe in those companies to keep performing over the long term, their share price will recover eventually.
 
I didn't know what thread to put this in but it probably belongs here.

The BoE reckon they can't do anything to stop inflation going over 10% but they are probably going to put up interest rates anyway so they look like they are doing something. Like trying to put out a bonfire with petrol.
 
BodyButter said:
I didn't know what thread to put this in but it probably belongs here.

The BoE reckon they can't do anything to stop inflation going over 10% but they are probably going to put up interest rates anyway so they look like they are doing something. Like trying to put out a bonfire with petrol.
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Yep as I suggested above it doesn’t to me make theoretical sense to raise rates given what his driving the inflation right now.
 
Pangloss said:
Yep as I suggested above it doesn’t to me make theoretical sense to raise rates given what his driving the inflation right now.
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I’ve studied modules in economics to your earlier post, and had the same basic principle drilled in to me.

To my mind, the inflation we’re seeing is being driven in basic commodities and raw materials that power and fuel the day to day living of people, the necessities (to some degree) to live. It’s the buying power of peoples cash, which can purchase less.

The inflation is not only fuel driven which increases the cost of basically everything, it’s the cost of transport as we’ve realised truck drivers are an important labour resource post Brexit and covid, the cost of packaging has gone up because more people are at home ordering off Amazon, the factories and ports in China have shut down pushing the price of a container up by 50%. Whilst some of these factors might normalise, when you start paying lorry drivers higher wages to train, they stick at that new level until over time they perhaps stagnate.

It isn’t so much driven by people getting access to cheap and easy finance, which pushes the price of houses, cars and clothes up on a basic level, and financial assets at a more complex level.

I do think interest rates are too low anyway, we’re all living on a finance drug and the theories we were taught as kids about saving are arguably poor advice to a youngster currently (as a cash ISA for example is a terrible investment in todays money).

Even if interest rates go up significantly from what they are today (0.75%?), it’ll still be low even versus levels pre financial crisis where they were what 2-2.5% was it?

The BoE rise won’t slow inflation as food inflation hasn’t hit yet. Supermarket bills will rise close to 10% over the next 12 months I reckon. I don’t see how interest rates can stop that.

And pray to fucking god if we end up with a no deal Brexit by the way.
 
The use of interest rates to stop this current inflation is a complete nonsense. It will just lead to more pain and misery for a lot of families who are already struggling but like our idiot Government and Tory MP's, the decision has been made by rich people totally out of touch with Joe public.

I like JF, can see massive civil disorder in the not too distant future plus the suicide numbers and general deaths will go off the scale come the winter when people can't afford to either heat their home or provide meals for themselves. The bailiff companies will have a field day evicting people who can't afford to pay either their mortgage or rent, and will be rubbing their hands with glee.

The Government and these fools who set the interest rates will have blood on their hands. Together with the greedy bailiffs, I hope they all rot in hell.
 
Price Waterhouse Coopers, money-grabbing bastards I'd like to blow them off the face of the earth.
For 17 years they have been milking the Longbridge site out of £millions and millions.
Those of you old enough to even know what I'm talking about is they are still paying the creditors of MG Rover of which I am one little bits and dabs of the £1000s we are owed whilst creaming off millions for doing so.
I've had a Cheque for £370, 17 years after I was made redundant , I suppose I should be grateful but I'm just livid
 
It won't improve your mood 57 but Longbridge is one of many as I'm sure you're aware - funny how there's always money to pay the administrators and bigger companies, yet smaller companies and employees tend to be last in line.
 
mike_field said:
It won't improve your mood 57 but Longbridge is one of many as I'm sure you're aware - funny how there's always money to pay the administrators and bigger companies, yet smaller companies and employees tend to be last in line.
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Really winds me up mate always PWC get the gig, people just don't know the truth about their money-grabbing.
They are up there with big charities for creaming off the majority of the money in admin fees
 
Yup, closed shop con largely. I don't doubt some cases require forensic thought to clawing money back but the manner of payout always seems weighted in favour of 'some'.
 
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