Earlier quoted context omitted.
True Capitalism looks a lot more like socialism than many would like to admit.
reap the profits, socialize the losses
That's crony capitalism again
SpaceX bond worth 10% less than issue price – heading for junk bond status
311–320 of 638 posts
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#312The worst about the SpaceX IPO is Nasdaq changing their inclusion rules for the Nasdaq 100. The index fast-tracked SpaceX stock for inclusion 15 days after the IPO, instead of the normal three-month seasoning period. They also changed its 10% minimum float rule to a 3x weighting boost for low-float stockss. So many people will unwillingly and prematurely invest into SpaceX, before it has any chance to discover its re…
I am really curious for what reason they choose to do it? Like what is in for Nasdaq?
Putting cynicism aside (there's plenty of that here already): there is a theory that people invest in index funds because they don't want to pick individual stocks. They want exposure to "the public stock market as a whole". I think there are good arguments on both sides of including SpaceX in such an index.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#313[flagged]
> even anti datacenters Now, I'm a computer guy, love tech and have nothing against datacenters. But the recent anti-datacenter sentiment is not some luddite reaction. Data-centers cause serious social changes in property prices, electricity costs, water waste etc. Sure, there is a need for more datacenters and more compute, but lets not diminish the very real worries by the people or communities affected. And contra…
I think the biggest change in public sentiment in datacenters is a reaction to the extreme scale they're being deployed at these days. They're really vastly unlike datacenters of the past. The power densities are so much higher, they're so much larger, and they're getting vastly more environmental waivers and tax subsidies than ever before.
A quiet, average-sized warehouse-like building in an industrial area with a big power substation next to it often didn't bother a lot of people. A giant monster of a building being built in what was previously people's backyards with howling on-site power generation that got installed without any kind of air quality reviews because they're allegedly "temporary" and starts sucking the groudwater dry is a whole different story.
This is a datacenter: https://maps.app.goo.gl/pzSsUHXPaUuLGaDa9 I doubt many people even know its a datacenter. Its pretty much any other office building.
This is also a datacenter. I imagine just about everyone living nearby knows its a datacenter. https://maps.app.goo.gl/wR4NgcWQVhJAy5Gy6
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#314Earlier quoted context omitted.
Nasdaq, FTSE Russell, and CRSP all implemented fast-track options. Fortunately S&P kept its 12-month requirement.
CRSP has always had a short waiting period, they did not change it. They did lower the free float rule
Free float rule was pretty low already for ftse, yea? Like we went through this with aramco still has free float under 3%, yet it's in vxus.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#315Earlier quoted context omitted.
Sounds like no true scotsman. Remember kids: socialism is judged by how it failed in real life, capitalism is judged by how perfect it is in theory
Empirically this isn't true. However you feel about "true" capitalism vs socialism, countries underpinned by capitalism have prospered, even the socialist flavors (China, Scandinavia)...while the countries that have attempted pure socialism have all failed.
The problem with that logic is you're treating economic systems as if they all exist in a vacuum, and you're setting up a circular argument of if its successful its actually because capitalism, if it fails it must have been socialism.
It completely ignores the decades of external hostility toward any nation that attempted to build a socialist economy. Almost every attempt has been met with near immediate intervention from captialist super powers, particularly the USA. Nixon activeley worked to cause the military coup in Chile, Cuba has faced the longest trade embargo in modern history (and yet still managed to outperform its peers in the region in healthcare and literacy). Its unscientific to attribute these struggles purely to internal failure when they are subject to deliberate economic warfare.
Secondly, your definitions are being stretched to fit your thesis. Scandinavia is not "socialist flavored" it IS a social democracy, with free markets. Claiming China's success is from captialism is ignoring that its economy relies entirely on state owned land, state owned and controlled banks, and state owned companies, and mandatory five year plans coming from the state.
If we classify any successful state-led initiative as "capitalist" and any blockaded, intervened upon state as "purely socialist" then the argument is an unfalsifiable truism.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#316Earlier quoted context omitted.
It almost was. S&P decided against it at the last minute, despite saying they would initially.
The S&P committee never said they would. Space X asked and the committee said no. They should not have asked.
No, but they did hold research sessions and they did draft the policy and the rules and all the updates and have them go through legal... they were planning to, until they saw public sentiment, or other influence. It'd be misleading to claim it was never a consideration.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#317Earlier quoted context omitted.
You're forgetting that whenever the incentives lead to bad places it isn't True Capitalism (tm).
True Capitalism looks a lot more like socialism than many would like to admit.
> The directors with of such [joint-stock] companies, however, being the managers rather of other people's money than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own
Adam Smith, the Wealth of Nations
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#318Earlier quoted context omitted.
Do I need to be able to short bananas for the market to settle on the price of a banana?
If you're confident the price of bananas will fall tomorrow you absolutely can sign a contract to deliver bananas next week at the current price and then buy them when the price drops...
Yes, you can but does that ability benefit the population/nation/market as a whole?
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#319Earlier quoted context omitted.
Ah yes, because capitalism in it's purest form would never have companies form monopolies and lobby governments for favorable legislation.
Under True Capitalism™, cartels could do their price fixing on reality shows.
End stage True Capitalism™ is when you have to subscribe to a streaming service to watch as the streaming service cartel fixes their prices.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#320Earlier quoted context omitted.
The Nasdaq is a shit index to begin with. There are so many other options.
The NASDAQ is up 27% in the past 1 year. S&P 500 up 21%, DOW +20%. So, it's doing pretty well!
I'm sure people planning to invest for only 1 year of their lifespan and began their investment journey exactly 1 year ago and who are in the process of selling everything they own today never to invest in stocks ever again will find that Nasdaq one year performance very useful information!