71–80 of 262 posts
This article discusses high quality investors. Where do I meet high quality founders? I’d be willing to bet my time on a good one, but all I come across is the shitcoin equivalent.
What do you consider as a "high quality founder"? I guess people will haver very different opinion what makes a founder "high quality".
Earlier quoted context omitted.
the US treasury secretary was on calls about whether to bail hedge funds out of gamestop to prevent cascading financial system failures. arguably there is nothing that is too dumb to be written about finance. dont let anyone discourage you.
Various government agencies are on calls to bail out various players in the financial system all the time and will continue to be. That isn't dumb per se.
This smells a lot like a hacker thought because they are exceptional in one field (cybersecurity), they therefore are exceptional in all fields. The result is that information presented in this article is very surface-level, and quite biased.
Being exceptional in cybersecurity is a pretty good indicator that someone will be successful in other fields. A good cybersecurity person will understand that cybersecurity is a mix of technical mastery and the art of understanding human behaviour.
I am not so certain about this. In particular being exceptional in cybersecurity does not make you good at playing political games or having the traits that a lot of bosses want from employees (I will attempt to avoid starting a discussion whether I consider such traits to be good or bad).
This is bad, don't read it. When you borrow $100 you do not create a liability which includes the interest to be paid. People who don't understand the very basics of finance and accounting shouldn't write about finance and accounting.
You are fixating on one tiny point which isn't really that important within OP's ... errm "opus". Why not critique the entire work? Anyway: I borrow 100 from someone. I am now in debt and they are in credit - to balance, both are 100. However, they require a return on investment - usury: 10 for 100 (or a 10% margin - call it what you like). When I take out my loan, I am in debt for 110 and they are in credit for 100…
Anyways, recognizing the interest over time would debit an expense account and credit some liability account... Could be the same account as the loan or could be an interest payable account, doesn't really matter in the context of the example.
Also you would not be "in debit"; the liability is on the credit side of your balance sheet.
Earlier quoted context omitted.
As a much better alternative, I would recommend "debt" by david graeber, which is amazing.
Is your comment perhaps in reference to the comment ‘ the assumptions and estimates that go into it, I recommend Financial Intelligence by Joe Knight and Karen Berman’ and not the parent comment you’ve replied to?
How money works? Well look into fractional reserve banking and do the math. If you’re a bank, you can just loan out 10-100 times what you have in assets and ask say 5% interest. Then 5*10 to 5*100 is your annual interest to the bank. That’s why the Bible and Quran are against usury.
Now let's biblical exegesis to define what is legitimate interest and usury.
The "good" (or "bad"?) thing about these holy scriptures is that they can be interpreted quite freely to fit a personal or institutional agenda.
This is bad, don't read it. When you borrow $100 you do not create a liability which includes the interest to be paid. People who don't understand the very basics of finance and accounting shouldn't write about finance and accounting.
You are fixating on one tiny point which isn't really that important within OP's ... errm "opus". Why not critique the entire work? Anyway: I borrow 100 from someone. I am now in debt and they are in credit - to balance, both are 100. However, they require a return on investment - usury: 10 for 100 (or a 10% margin - call it what you like). When I take out my loan, I am in debt for 110 and they are in credit for 100…
And, in my initial comment i explicitly point out the error - the interest amount should not be there. People don't tend to show the working for zero * x = zero. This misunderstanding of a very fundamental piece makes any material on this topic by this author not worth reading. It might render everything they write not worth reading because they also don't know where their circle of competence stops.
How money works? Well look into fractional reserve banking and do the math. If you’re a bank, you can just loan out 10-100 times what you have in assets and ask say 5% interest. Then 5*10 to 5*100 is your annual interest to the bank. That’s why the Bible and Quran are against usury.
Without fractional reserve rules the banks could lend their money infinitely. I like Richard Wagner's theories/research on the subject, as in he actually asked for a loan and went through the books of the bank to verify where the money came from, it came from nowhere, they just credited their account and that's it.
This is bad, don't read it. When you borrow $100 you do not create a liability which includes the interest to be paid. People who don't understand the very basics of finance and accounting shouldn't write about finance and accounting.
You are fixating on one tiny point which isn't really that important within OP's ... errm "opus". Why not critique the entire work? Anyway: I borrow 100 from someone. I am now in debt and they are in credit - to balance, both are 100. However, they require a return on investment - usury: 10 for 100 (or a 10% margin - call it what you like). When I take out my loan, I am in debt for 110 and they are in credit for 100…
Earlier quoted context omitted.
Various government agencies are on calls to bail out various players in the financial system all the time and will continue to be. That isn't dumb per se.
some things are about other things too. gamestop was peak dumb. nobody knows anything.