American Economics Thread

[9dashline]

The Delta variant now plays a small role in the US economic slowdown. Its more about the shortages, inflation and the millions of resignations that are now taking place in the US.

And in the meantime the stock market just keep making record highs.

This is by design... the Feds are now essentially directly injecting fake money into the stonks market now... between this and the CIACoin, I think its going to keep going up for a while in the short term.... the idea is to get everyone "invested" into these ponzi schemes so that they don't try to spend it all on "real stuff" and thus collapse the already bottlenecked strained system even faster.... if the public at large ever woke up and realized what is really happening it wouldn't give the government the time it needs to put all the other measures in place...

Historically money was supposed to represent real wealth and resources, now its been turned upside down on its head, the shelfs are empty and American's are told they may not even be able to find xmas gifts but the stock markets are shooting to the stars and Tesla is accepting bitcoins for its cars again.... Same with the massive labor shortage, so much so they are bringing back child labor in some places and yet you see the abysmal US jobs reports month after month... the whole system has gone haywire and out of whack. We are now fully in Emperor has no clothes territory

 

[FairAndUnbiased]

Let's see how nonsensical Tesla's valuation is.

If it was truly worth that much, Elon Musk (largest single shareholder, 20% valuation, $200 billion) could cash out just 1/4 of his personal wealth - merely 5% Tesla outstanding stock, and just buy out Ford for all cash, and destroy Tesla's main domestic competitor.

Why doesn't he try? Or, alternatively, would Ford's board of directors accept this?

 

[Kaeshmiri]

Let's see how nonsensical Tesla's valuation is.

If it was truly worth that much, Elon Musk (largest single shareholder, 20% valuation, $200 billion) could cash out just 1/4 of his personal wealth - merely 5% Tesla outstanding stock, and just buy out Ford for all cash, and destroy Tesla's main domestic competitor.

Why doesn't he try? Or, alternatively, would Ford's board of directors accept this?

Being a CEO of a company has some disadvantages one of them being restrictions on selling shares (to avoid insider trading). He cant suddenly bailout with his share if he wants. Acc to rules he would have to declare his sale in advance . If that happens then the share price will fall and reduce his net worth as a result.

Teslas valuations are absolutely mindboggling but if you listen to the general discourse amongst Americans, for them Tesla is a company of the future that will dominate critical sectors like Space (SPaceX), Cars, Clean Energy etc Hence the massive bets on it.

 

[FairAndUnbiased]

Being a CEO of a company has some disadvantages one of them being restrictions on selling shares (to avoid insider trading). He cant suddenly bailout with his share if he wants. Acc to rules he would have to declare his sale in advance . If that happens then the share price will fall and reduce his net worth as a result.

Teslas valuations are absolutely mindboggling but if you listen to the general discourse amongst Americans, for them Tesla is a company of the future that will dominate critical sectors like Space (SPaceX), Cars, Clean Energy etc Hence the massive bets on it.

He doesn't need to bail with his entire share, just a small portion, and can also arrange a share swap agreement with the Ford board. Tesla would need only about 5%-10% of its share valuation to just outright buy Ford in a stock swap. Ford shareholders will be glad to be rid of this old dinosaur stock and hopping onto the once in a lifetime Musk Hyperloop.... Right?

It's funny how BYD is everything Tesla wanted to be and more, but has a market cap 5x smaller.

Don't even get me started on SpaceX.

 

[caudaceus]

Don't even get me started on SpaceX

Not very bullish with SpaceX? My Twitter feeds seems believe that it will become greatest defence company ever as space warfare domain gained more importance.

 

[BlackWindMnt]

Not very bullish with SpaceX? My Twitter feeds seems believe that it will become greatest defence company ever as space warfare domain gained more importance.

Yeah SpaceX is a very bullish case but only because US government will flow their books with DARPA, Pentagon and NASA contracts.
For the rest i'm not impressed and they are not doing ground breaking stuff like vertical landing again on a barge.

 

[FairAndUnbiased]

Not very bullish with SpaceX? My Twitter feeds seems believe that it will become greatest defence company ever as space warfare domain gained more importance.

I think their business model is laughable without massive cash infusions from the gov which seems to have essentially abandoned ULA.

 

[BoraTas]

I think their business model is laughable without massive cash infusions from the gov which seems to have essentially abandoned ULA.

Their method of product development is insane too. There is no other example of their "fail fast" strategy in modern engineering and I don't believe they are the only smart people around. Their "fail fast" strategy looks more like pre-scientific revolution engineering which used random tinkering, sporadic inspiration and trial and error as primary methods. In fact there has always been an emphasis on minimizing the number of prototypes needed. I think the company simply has a lot of surplus money thanks to the government and its directors believe spending that money to stay on headlines is important.

 

[Tyler]

Let's see how nonsensical Tesla's valuation is.

If it was truly worth that much, Elon Musk (largest single shareholder, 20% valuation, $200 billion) could cash out just 1/4 of his personal wealth - merely 5% Tesla outstanding stock, and just buy out Ford for all cash, and destroy Tesla's main domestic competitor.

Why doesn't he try? Or, alternatively, would Ford's board of directors accept this?

Who would buy his tesla shares with real money? If you have the money, you would rather buy ford yourself.

 

[gelgoog]

Their method of product development is insane too. There is no other example of their "fail fast" strategy in modern engineering and I don't believe they are the only smart people around. Their "fail fast" strategy looks more like pre-scientific revolution engineering which used random tinkering, sporadic inspiration and trial and error as primary methods. In fact there has always been an emphasis on minimizing the number of prototypes needed. I think the company simply has a lot of surplus money thanks to the government and its directors believe spending that money to stay on headlines is important.

The "fail fast" model is most appropriate when engineering discipline isn't properly established. It is nothing new it is known as the "spiral model" of development and was used back in the space race. Fact is there simply wasn't enough experience on reusable vehicles to begin with. So attempting to make a huge project that is expected to work 100% correctly the first time is kind of impossible to begin with.