I keep seeing "SoftBank-backed ..." in TC headlines, but rarely other funds. Is it just fashionable to bash SoftBank?
People got tired of seeing "Zoom" in headlines
Opendoor is cutting 35% of its employees
41–50 of 58 posts
Re: Opendoor is cutting 35% of its employees
#42I keep seeing "SoftBank-backed ..." in TC headlines, but rarely other funds. Is it just fashionable to bash SoftBank?
Yes it is. They backed a couple hilariously bad bets in a big, public way, and people like feeling smarter than rich strangers. I would be curious, though, if there are other funds with similar scope and track records to Vision 1 that have just managed to skate under public scrutiny thus far.
Don't forget that part of the negativity towards SoftBank comes from the source of most of their funds. At least the majority of their funds in the previous fund they raised.
Re: Opendoor is cutting 35% of its employees
#43All the ibuyer companies won't make it. Nationwide downturn in house prices and all the inventory these companies are holding are underwater. Zillow and Redfin are more than likely done. Zillow maybe holding 60,000 homes. We never learn our lesson. GE was taken out by their financial division and high risk bets.
That’s mainly due to irresponsible monetary policy by the Fed. Imagine if the benchmark rate was 10%. A lot of the indebted would default/go bankrupt, but it would also incentivize companies to save and behave fiscally responsible.
In short order, when inflation takes off, it will be 10%, so we'll get to test that theory.
Re: Opendoor is cutting 35% of its employees
#44All the ibuyer companies won't make it. Nationwide downturn in house prices and all the inventory these companies are holding are underwater. Zillow and Redfin are more than likely done. Zillow maybe holding 60,000 homes. We never learn our lesson. GE was taken out by their financial division and high risk bets.
That’s mainly due to irresponsible monetary policy by the Fed. Imagine if the benchmark rate was 10%. A lot of the indebted would default/go bankrupt, but it would also incentivize companies to save and behave fiscally responsible.
If the benchmark was 10% a lot more money would go to more traditional investments. And VC funding would be much lower.
Re: Opendoor is cutting 35% of its employees
#45[deleted]
Re: Opendoor is cutting 35% of its employees
#46Earlier quoted context omitted.
That’s mainly due to irresponsible monetary policy by the Fed. Imagine if the benchmark rate was 10%. A lot of the indebted would default/go bankrupt, but it would also incentivize companies to save and behave fiscally responsible.
If the benchmark was 10% a lot more money would go to more traditional investments. And VC funding would be much lower.
Stated another way, the equity premium over a 10% treasury rate would make VC investment for LPs much much less attractive as an asset class.
Re: Opendoor is cutting 35% of its employees
#47All the ibuyer companies won't make it. Nationwide downturn in house prices and all the inventory these companies are holding are underwater. Zillow and Redfin are more than likely done. Zillow maybe holding 60,000 homes. We never learn our lesson. GE was taken out by their financial division and high risk bets.
[deleted]
Re: Opendoor is cutting 35% of its employees
#48All the ibuyer companies won't make it. Nationwide downturn in house prices and all the inventory these companies are holding are underwater. Zillow and Redfin are more than likely done. Zillow maybe holding 60,000 homes. We never learn our lesson. GE was taken out by their financial division and high risk bets.
As a consumer of Zillow and Redfin, I like their website. But, as a house buyer, I really dislike the fact that they always try to push their buyers Agents on you.
Re: Opendoor is cutting 35% of its employees
#49Earlier quoted context omitted.
Agreed, I like their website a lot but don’t like them trying to sell houses
Seems like a pretty serious conflict of interest, being both broker and seller. I’d think twice about counting on them for price discovery now.
not only that but in highly competitive markets like the bay area, they may even hold out for buyers that use one of their own agents (and try not to sell to others). That way, they can make 3% commission on both the buying and selling side. It's a huge conflict of interest to their own client which technically isn't legal ~ they're supposed to consider all offers.
Re: Opendoor is cutting 35% of its employees
#50Damn, this list keeps growing and growing ... https://layoffs.fyi/tracker/
Yes, but stocks are ripping higher on much worse jobless claims, housing starts, and Philly Fed numbers than expected, 113 unexplained cases of reinfection in South Korea, and the PPP fund being completely tapped out with three weeks to go in Congress' recess. The market is fully convinced that everything is fixed.
alot of people are saying it's just a dead cat bounce. REalVision presented that in most of the past drops of this magnitude, you typically see this type of rebound before it goes lower back to retest the recent lows.