281–288 of 288 posts
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Here's the thing about debt, though: If your debt is denominated in your own sovereign currency, you can just print more when you run out of money.
Which doesn't get you more wealth. It just makes the currency worth less.
Oh man,this makes my stomach churn with anxiety. It's a tough job market out there and it took 4 months to land job offers after being laid off. I have a competitive offer from Oracle OCI with a team adjacent to this initiative and I am seriously considering it. How long do you guys think it will take to blow up (if it does) To the experienced devs out there; would you take a 15% less offer from a medium sized compan…
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As far-fetched as it sounds, I'd prefer elected officials and the justice system hold people accountable rather than psychotic murderers.
Who wouldn't? In the real world, the top elected officials and the justice system are covering up sex trafficking of children among the US elites, and that's only the tip of the iceberg. The system is psychotic and what's strange is there haven't been more people like Luigi.
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The problem is if large banks fail they take everyone else with them. We should have dealt with this in 2009, but for some reason it didn't happen. But money talks, I guess.
Iceland let it's banks default, and is now doing rather well. In fact, bank failure and then having the government only guarantee ~$50k of funds per person is a good way to hand wealth to the people and take it from corporations and the super wealthy.
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How will they structure that for you to not show up on the balance sheet then? I'm not aware of a way, and the way you described wasn't true. All you now offered is "bankers can do it", but how without having to report it?
This isn’t something in which I’m an expert on any of the current details. You can borrow a million dollars and use it to buy gold. An asset and a liability on the balance sheet each ba million dollars. You can buy futures contracts with an underlying value of a million dollars. Nothing on the balance sheet. Zero dollars on both assets and liabilities. The two are economically indistinguishable. There are regulations…
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This isn’t something in which I’m an expert on any of the current details. You can borrow a million dollars and use it to buy gold. An asset and a liability on the balance sheet each ba million dollars. You can buy futures contracts with an underlying value of a million dollars. Nothing on the balance sheet. Zero dollars on both assets and liabilities. The two are economically indistinguishable. There are regulations…
If you borrow a million dollars and buy gold both of those will have to be communicated to shareholders and indeed show up in the balance sheet. It doesn't matter if you say the lines add up to zero, that's still in the balance sheet shown for everyone to see.
If you buy a futures contract with 1m of underlying value - it is NOT on the balance sheet. The balance sheet is unchanged. Economically it is exactly the same thing. It is exactly like you borrowed a million and bought gold with it but the loan and asset are invisible. Shocking, isn't it?
The structured finance dept of an investment bank uses exactly this (among other techniques) for off-balance sheet financing. There are rules they have to follow designed to prevent or minimise off balance sheet financing. You think the regulators have the investment bankers in a bind where they can do nothing and can't charge big fees resulting in the closure of all the structured finance departments? Well you know that could have happened without my knowledge, but I'd be quite surprised. You might know better? Do you want to bet?
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We have similar FDIC insurance in the US. The solution is companies have many, many deposit accounts to still get the insurance, mostly for payroll purposes.
Could easily change the rules so real humans get government insurance, but companies do not. And perhaps have the insurance pay out only once per year per person too, so that when multiple bank failures happen at once there is not much benefit to splitting funds.
The cause of the run isn't that important, and if you banking system collapses because companies pull out all their money you're not in a better position than if individuals do.
Well technically they don’t own the debt, the SPVs that own the data centers do. The giants just have long term commitments, but if shit hits the fan, it’s not the tech giants but the banks that lent the money to the SPVs that are at risk. This usually means all of us are on the hook.