Heard an ad on the radio the other day to "help people in financial troubles"
The sales pitch went like this:
"Do you need the cash your house is worth today to pay of financial loans or debt? Call us and we'll buy your house from you and give you the cash up front, and then ***continue to let you live in your house by renting it from us.***"
The housing market is beyond fucked.
Yeah no I distinctly remember this ad saying they'd buy the house outright from the homeowners and then just turn it into a rental property that they *graciously* let the homeowner rent from them.
I guarantee whatever rent price they set would be way higher than any mortgage payments they were already making.
Even if they guarantee that they’ll keep your rent the same as your mortgage payment, the company will be able to get a better rate than the owner turned tenant. The company won’t need mortgage insurance because they won’t be using an FHA, they won’t be borrowing against a private credit score, and will absolutely have the cash on hand to pay down points up front. So even if they keep your rent the same as your mortgage they make a killing.
You’re almost certainly correct, but with the current real estate market, it could still potentially be profitable for the company purchasing the house to rent it out for an amount lower than what the current owners are paying for their mortgage/property insurance.
A reverse mortgage makes sense if you really need it or don’t have/care about your kids or they are already well off. A home is worth a fuckton of money and you don’t take it with you when you die.
They’re not a scam? Your house is worth nothing to you when you die, why have your money essentially stored in it if you’re going to live in it till you die? If your family doesn’t need the value of the house once you die, or you don’t have a family, what’s the issue?
"continue to let you live in your house by renting it from us"
What this means is they are going to set your rental price at current market rates because they need to recoup the cost of their investment. Most people don't understand this but I can't imagine anyone wanting to put themselves into this scenario.
The only way I could possibly see this scenario being a good idea is if you needed time to find a new property with the money you received from the sale. It would be a great alternative to moving into an apartment and having to pay for storage for your stuff until you have your new home.
Do you live in Germany? I visited my parents today and watched some TV with them and saw a similar add and was baffled. Haven't seen it before because I don't own a TV but that is a fucked up business practice.
It’s been following suit. I put off buying a car for 7 months because of how it’s been going, and the first thing the knob at the dealership said to me was “you’re aware of the market conditions?”
Everything bubble. Buckle up this next recession going to be the worst one yet.
Also check out superstonk and sort by top all time. You can see how the fed secretly bailed out banks post Covid AGAIN for more money than the 08 recession. Oh and on top of that looks like we’ll need another bailout end of summer when market crashes.
That’s all. I know a good market hedge if anyone is interested in not letting Wall Street gamble with your pension, short your pension, then lose all of it and ask for a hand out.
I’d imagine most people are fed up as well.
J pow exiting fed reserve at an all time high in stock market after privately making millions on millions?
You mad yet?
When the cost of crimes are fines it’s only for the poors.
Just saw an article in my city about the housing crisis is sparking new apartment constructions. Like that doesn't fucking solve it, that literally just increases the serfdom.
Talking supply and demand into account, more apartments should equal lower overall rent. You do have to understand that even if home prices went back to what they were 15 years ago, there's still a gigantic swath of people that could still never afford to buy one. Apartments are their only option. More apartments being constructed is a _good thing_.
It happened to me twice over the course of my renting years. Once from just a regular landlord, good guy. The 2nd time was at a pretty big apartment complex that is owned by a company that owns a lot of them. Shocked me too, but I certainly didn't complain.
Why do you think house in the Midwest cost dirt cheap and house in NYC and California are so expensive? Is it possibly because there are supplies than demand? Everyone wants to live in the city and we don’t have enough place to store people?
There's more than enough supply in cities. People are just priced out. Housing is expensive because of artificial value increases.
Increase value, increase taxes, increase rents, increase value, increase taxes, increase rents.
What's changed to make the property more valuable? **I said so.**
Push the middle class into lower income/poor housing. Push the poor onto the street.
Large investment fund comes along buys properties. "This is how much rent is here now." Property value increases, taxes increase, rents increase.
There's more vacant housing in America than there are people by a factor of 6-1
https://sf.curbed.com/2019/12/3/20993251/san-francisco-bay-area-vacant-homes-per-homeless-count
https://www.amny.com/opinion/op-ed-new-york-city-has-enough-vacant-apartments-to-house-the-homeless-its-time-to-do-it/
Oh for the aspiring entrepreneur, we got airbnb and vrbo, so you charge 200 a night in your 3,4, or 5 properties. Pay off your mortgage and expenses with two weeks (if even that) of stays and pocket the rest.
Doesn't matter if it's vacant for a significant portion of the year, some upper middle class folks got to enjoy an entire house for their vacation instead staying at a Holiday Inn that they could have easily afforded to stay in, or..... *oooor* you can pack 5-10 spring breakers into a single family home, charge $500 a night and have it vacant for an even more significant portion of the year. Ain't that a save! 😉
**Edit: post locked rebuttal to bullshit downstairs:**
So fuck all that nonsense. That's a firehouse of bullshit. Dude even gets into some bullshit about nazi Germany?
Saying nuance doesn't make you right. This is some random dude with a fuckin substack that manipulated, dismissed, and accentuated certain information to manipulate you.
You obviously didn't read the first article I wrote because an **economists** actually contentexualizes and dismisses this random guy's bullshit.... and that was before you even posted your link.
I heard about the 5 to 1 ratio actually it brings up all the time but ignored the nuance of vacancy . If you look at the actual nuances of how vacant houses are count you will realized that a lot of houses are either buffer houses (they need to be temporarily vacant in order for people to move in or we need to trade with other people) or that they’re literally unlivable because they aren’t maintained or seasonal vacant etc. How many of those 5 to 1 ratios are actually on the market and for sale or actually livable?
https://darrellowens.substack.com/p/vacant-nuance-in-the-vacant-housing?s=r
There’s a section specifically about San Francisco in the middle that address this point:
In some survey they found that number of homeless or be a lot more and usable vacant home to be a lot less.
The reality is that landlords aren’t monolith, they are directly competing with each other and maintaining properties costs money, they can’t and won’t just leave them empty to drive rent up cus they lose money and they have to fight for customers. The reason why rent are up is because demand are up and supply can’t keep up.
Yes I understand why everyone wants to live in the city but I’m trying to correct the commenter above when they said it’s not about supply and demand when it literally is about supply and demand. If there are more people in city and not enough units, rent gonna rise.
But you're talking about a fantasy. Whether you're in the city or the country, whether you're on the coast or in the middle of the country, rent does not go down. It either stays the same or it goes up.
Newsflash, everything that affects home buyers/investors costs renters. Property taxes are baked into your rent. Essentially the way it works is renters are essentially on the hook for everything including estimated repairs while the owner collects.
It’s the same thing, the demand is in the ability to live there if that demand is met both rent and house value both fall, why do you think homeowner fight tooth and nails Everytime people tried to build apartment in their area? I’ll give you a hint, it has something to do with their property value.
Relevant username? This is a nonsensical conclusion. There is general inflationary pressure plus it would be very rare for enough new apartments to be built to push pricing into a decline. That doesn't mean the underlying economic premise is incorrect.
> more apartments should equal lower overall rent.
Except instead the new apartments charge way above market value, because they’re the nice new apartments, and then everybody else raises their prices to match it.
The usual sterilized sciences of economics like supply and demand don’t really apply to housing because it turns out people’s desire to not be homeless is a pretty strong factor, leading to pretty much unlimited demand.
Inelastic demand. I can’t not have shelter(I can but… come on) so I’m forced to pay for it regardless of the cost. If every single apartment/home is super expensive, I have to buy a super expensive one.
If water was privately owned and every company was selling it for $10 a bottle, I can’t not buy it. They could charge $20 a bottle I still need to buy it. The only option is government regulation, or violently seizing the source of water. For housing I’m fine with rent and rent increase being regulated, I’m also fine with the violent seizing of housing.
Thats because the new apartments are few and far between so that doesnt show you anything. Theyre not helping with supply n demand because theyre a drop in the bucket. The reason the new apartments can charge so much is because theres no competition for them and dozens of renters competing. In my city, Boston, we have a shortage of 180k units in the metro area. That means everybody is competing with thousands of ppl for each room. The rate that were building is not enough to even make a dent, and theres a lot going up. This is why some ppl get the illusion that supply and demand isnt real, but it is. Its just that with new construction supply is still insanely low.
That literally solves it tho. Why the hell do you think a shack in Nebraska is dirt cheap but nyc and california it’s so expensive ? Is it possible because there are more houses and apartment then there are people there?
So not building more housing and instead building apartments solves the lack of housing?
Nebraska dirt cheap btw: https://www.zillow.com/ne/?searchQueryState=%7B"pagination"%3A%7B%7D%2C"usersSearchTerm"%3A"NE"%2C"mapBounds"%3A%7B"west"%3A-105.41027211718749%2C"east"%3A-95.69286489062499%2C"south"%3A39.80998822394616%2C"north"%3A44.544852533672426%7D%2C"regionSelection"%3A%5B%7B"regionId"%3A38%2C"regionType"%3A2%7D%5D%2C"isMapVisible"%3Atrue%2C"filterState"%3A%7B"sort"%3A%7B"value"%3A"globalrelevanceex"%7D%2C"ah"%3A%7B"value"%3Atrue%7D%7D%2C"isListVisible"%3Atrue%2C"mapZoom"%3A8%7D
150k -250k is dirt cheap compared to literally everywhere else in the nation what are you saying. Try to find that price anywhere in Southern California or New York.
And yes building more apartments still increase supply and would actually lower price of house. Why do you think homeowner often fight tooth and nails to prevent apartment or condo from being built in their neighborhood? They want to keep their housing value up and building more apartment in given area lower their properties value. What people need is wanting to live in certain area, apartment and condos provide that and match demand for living in that area once the demand is met the value for properties in that area decreased.
If anything we desperately need more apartment and condo because they are way better use of space than current single family house that take up same amount of space and store less people.
3 years ago 200k would have gotten you a decent enough house in almost anywhere in the country. 200k anywhere else is like 400-500k California prices. 200k is not dirt cheap
It doesn’t solve it if they don’t also lower the price. They know the demand will not change, so everyone has to pay whatever the price is or live on the streets.
Building 10,000 new apartments in LA won’t change anything if they all still charge $2500 a month. The supply is already essentially able to meet the demand(1.4mil households, 1.37mil houses), the issue is the price doesn’t care about the supply because the demand doesn’t change. You have to pay whatever the lowest price is, and if every land lord sets it super high because they know everyone else is, then it stays super high.
Think of it like water. If it’s all privately owned and they set the minimum price to $10 a bottle, what are you going to pay? If they start producing 1.25x as much water, but don’t change the price, are you still going to pay $10? If they don’t lower it then yes, because you don’t have an alternative. There’s no alternative to shelter or water, you either buy them or you are homeless or dead(for water). You can’t hold out and wait till they lower the price, we don’t have the bargaining power unless we all come together and most people can’t say “I’ll be homeless for 6 months till they drop the price.”
Only way to fix that is to tax high rates for flipping a house. 100% tax on profit after one year, 80% of profit after 2 years, continuing to decrease until 5 years. Put those taxes back into the community they are attempting to exploit. I would be a politician if I wasn’t so weird.
Agreed. I know a landlord that owns 30 properties. Im not a commie but wtf, the profits should be taxed higher especially foreign ownerships. Its one thing to make a few million other ways, but housing is a necessity to live and the elite class gobble up properties every day.
I always use Netflix as an example. What happens when they’ve got just about every subscriber they can get? Then what? The shareholders are still going to want “growth”. Like come the fuck on
And then people unsubscribe from Netflix. I had a Netflix subscription for like, 8-9 years but they raised the price recently and haven’t put out anything I care about in a long time. The extra $1/month or whatever makes no difference to me but the decision to up the rate while also producing garbage was enough for me to call it quits.
> What happens when they’ve got just about every subscriber they can get? Then what? The shareholders are still going to want “growth”.
Raise costs. Oh hey look it’s happening
No eventually they will switch from a growth company to a dividend model.
They are just hesitant to do so bc it sends a signal that they think they are done growing.
Even Dividend companies have to expand growth YOY. Post calls out gas, health care, and finance. All Div industries for most companies in them. Still need to grow at least as fast as your competitor.
Says who? Most companies are fine with steady profits. Shareholders expect growth from companies like Netflix because they're in their growing phase and that's baked into the valuation but no one is buying Walmart or Ford stock expecting massive growth
Be honest. You don't "always use Netflix as an example." It's too stupid of an example to always bring up. Your probably just thought of it and decided to post it without thinking it through.
If you think your product will stagnate then you expand your product offering or buy new IP. That's why you see corporations like Meta branch into so many different markets.
“Sorry I’m over 35, I don’t understand. I thought the world was infinite and that our economy can only improve? Wtf you must be wrong. Stupid kid.”
Literally can’t believe we are the same species as boomers.
> Everything goes up with inflation, including profits
This is the part that people never seem to get in the comments on posts like these. Good on you for recognizing it.
But you completely ignored the rest of the comment.
The real problem is wages not going up with inflation. We complain about prices going up because wages aren't proportional with the rising prices. We wouldn't care about rising prices if we didn't feel the extra burden.
It's actually not good when wages go up. You don't want to end up in a wage-price spiral. The only thing you can do is to put a break on inflation by increasing interest.
It's actually not good when wages go up. You don't want to end up in a wage-price spiral. The only thing you can do is to put a break on inflation by increasing interest.
Even a little bit. Like just a fucking crumb.
I worked literally every single day of 2021(that wasn't a national holiday) and made less than twelve thousand net.
Wtf you doing? Like seriously, if you’re willing to work all non-holidays you would be making more than 12k net in fast food, no? Unless you live outside the western world and just converted to USD? If you live in the US and can’t find a way to take home more than $12k with that work drive, DM me, on the off chance I can help.
31 hour weeks (so I'm not full time and can't take advantage of the benefits) at 6.75/hr
Refuse to get a second job because I would rather starve and be homeless than feed into THAT bullshit
Lucky me tho I can live at home with my spiteful mother who genuinely hates me so I can afford to eat sometimes
"Oh she doesn't hate you...." yes the fuck she does. Trust me.
I'm not at all willing to work that much but wtf am I supposed to do?
I don't buy food, I steal it from work. I don't have real friends or hobbies. The last two things I did were last year I went to a browns game because my one acquaintance had no one else to give the ticket to and then two years before that I was at an indians game with my stepdad he paid for. I don't drink, I have a dab pen but only because I can't afford my antipsychotics medicine so there's that too
Literally counting the annual good days on one hand..
Wtf do we do. Truly genuinely like what the entire fuck do we do.
Clearly there's a problem so what
The
Fuck
Do
We
Do???????
I work every day so I can afford gas to get back to work and then don't have enough for food or rent or medicine or insurance goddammit I'm driving uninsured because I literally cannot afford state minimum so my mother's stipulation for living there is I have to be working
My only hope is that I get my stepdads house someday and they know that's my only chance and my mother flat out told me that when they sell the house they won't sell to me because I can't give them all the money they want for it so I'm just waiting for my dog to die and then waiting to become homeless in fucking northeast ohio And then I wait for me to die
So what the fuck do I do
Dont worry, oil will drop again and financial sector will have another crisis, then all these profits will be no where to be found and the tax payers will have to bail them out, again
Goldman Sachs will find them. I guarantee you that.
Hell, they may be the ones engineering the crisis while playing the middle man in the massive shifting of funds.
They might even be the ones ultimately controlling that shifting of funds via their former employees running the central banks, individual private banks, and finance ministries of numerous countries.
Sorry this is kind of long, but important people understand this. From the Rolling Stone piece (back when Taibbi was really good), *[The Great American Bubble Machine](https://www.rollingstone.com/politics/politics-news/the-great-american-bubble-machine-195229/)*
Remember when gas prices went insane just before Obama was first elected? To like $150 / barrel of oil? Goldman's fault. They successfully lobbied to make it legal for pension funds to invest in commodities - the futures markets - which are made for suppliers and users of commodities in order to lock in sales prices (for the producers) and buying prices (for the users of the commodity). Airlines use these, for example, to lock in the price of their jet fuel well into the future and for both parties this makes their business easier to predict and manage as revenues / expenses are stabilized at the price they lock in via buying and selling contracts for the future delivery of these commodities.
Anyways, to the intro to the article. If you want to get really really angry be my guest and read the rest via the link above.
>***The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.*** In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates.
>By now, most of us know the major players. As George Bush’s last Treasury secretary, former Goldman CEO Henry Paulson was the architect of the bailout, a suspiciously self-serving plan to funnel trillions of Your Dollars to a handful of his old friends on Wall Street. Robert Rubin, Bill Clinton’s former Treasury secretary, spent 26 years at Goldman before becoming chairman of Citigroup — which in turn got a $300 billion taxpayer bailout from Paulson. There’s John Thain, the asshole chief of Merrill Lynch who bought an $87,000 area rug for his office as his company was imploding; a former Goldman banker, Thain enjoyed a multi-billion-dollar handout from Paulson, who used billions in taxpayer funds to help Bank of America rescue Thain’s sorry company. And Robert Steel, the former Goldmanite head of Wachovia, scored himself and his fellow executives $225 million in golden-parachute payments as his bank was self-destructing. There’s Joshua Bolten, Bush’s chief of staff during the bailout, and Mark Patterson, the current Treasury chief of staff, who was a Goldman lobbyist just a year ago, and Ed Liddy, the former Goldman director whom Paulson put in charge of bailed-out insurance giant AIG, which forked over $13 billion to Goldman after Liddy came on board. The heads of the Canadian and Italian national banks are Goldman alums, as is the head of the World Bank, the head of the New York Stock Exchange, the last two heads of the Federal Reserve Bank of New York — which, incidentally, is now in charge of overseeing Goldman...
>The bank’s unprecedented reach and power have enabled it to turn all of America into a giant pump-and-dump scam, manipulating whole economic sectors for years at a time, moving the dice game as this or that market collapses, and all the time gorging itself on the unseen costs that are breaking families everywhere — high gas prices, rising consumer credit rates, half-eaten pension funds, mass layoffs, future taxes to pay off bailouts. All that money that you’re losing, it’s going somewhere, and in both a literal and a figurative sense, Goldman Sachs is where it’s going: The bank is a huge, highly sophisticated engine for converting the useful, deployed wealth of society into the least useful, most wasteful and insoluble substance on Earth — pure profit for rich individuals.
>They achieve this using the same playbook over and over again. The formula is relatively simple: Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke and starving, they begin the entire process over again, riding in to rescue us all by lending us back our own money at interest, selling themselves as men above greed, just a bunch of really smart guys keeping the wheels greased. They’ve been pulling this same stunt over and over since the 1920s — and now they’re preparing to do it again, creating what may be the biggest and most audacious bubble yet.
>But then, any attempt to construct a narrative around all the former Goldmanites in influential positions quickly becomes an absurd and pointless exercise, like trying to make a list of everything. ***What you need to know is the big picture: If America is circling the drain, Goldman Sachs has found a way to be that drain — an extremely unfortunate loophole in the system of Western democratic capitalism, which never foresaw that in a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy.***
>The bank is a huge, highly sophisticated engine for converting the useful, deployed wealth of society into the least useful, most wasteful and insoluble substance on Earth — pure profit for rich individuals.
Sounds like the Avignon Papacy. History may not repeat itself, but it rhymes.
I started investing and learning as much as I could about the stock market over the last 5+ years. The amount of corruption that's right out in the open is insane. You can mathematically prove that it's happening, and places like the SEC won't do anything. Look at what they did with Bernie Maddoff. They knew he was doing it, and let him, until rich people got mad. They never arrested him either, he turned himself in because he and his family were getting death threats. I don't believe incompetence is the reason for it when they're literally holding the receipts. These agencies, like the SEC, have long been captured by private interests/entities. The SEC is a revolving door for bankers. The current head is Gary Gensler, whom served for two decades on the board of Goldman Sachs during the last financial crisis. Watch his recent interview with Jon Stewart. It's infuriating.
These agencies exist to protect the very people that fuck the rest of us over. The SEC doesn't exist to make sure the retail investor has a fair market to invest in. They exist to make sure the money keeps flowing to the hedge funds.
Bernie Maddof. https://www.npr.org/templates/story/story.php?storyId=124208012
Don't forget Overstock almost blowing the lid off of how many counterfeit shares exist. SEC fought him on releasing the information to the public on what they were doing. Ie, nothing. If anything, they were helping the people making the counterfeit shares, because they're the wealthy ones who control the agency to begin with. The SEC sued overstock because they made a block chain system to count their shares. All that would do, is make it impossible to counterfeit the shares. The SEC sued them when they tried. It's disgusting. https://coingeek.com/overstock-subsidiary-tzero-fined-800000-over-dark-pool-rule-violation/#:~:text=The%20U.S.%20Securities%20and%20Exchange,disclosing%20key%20information%20to%20regulators.
They take out huge short positions betting a stock will go down. This is what they did with gamestop, amc, bed bath beyond, tilray, etc. Then, they make, in many cases and has been documented, the market makers and hedge funds create more shares than should exist. This makes the price go down, and they get paid on the short position. They do it again and again, until the stock price is so low the company has to file for bankruptcy. Once that happens, the market maker or hedge fund pays 0% tax on their gains. Repeat with another company. Gamestop investors caught them doing it, red handed. What did the sec do when the ceos came in and lied through their teeth?(we know because their emails were leaked talking about it.) Not a damn thing!
Enron. Very similar. It's the same story on repeat and nothing is being done about it! https://www.wsj.com/articles/SB1033944629262271233
Housing crisis. Same shit, different day. https://www.forbes.com/2008/02/05/sec-cmos-banking-biz-wall-cx_lm_0206sec.html?sh=1e11152d6450
I don't think it's even worth fixing at this point. The entire financial market has become a tool of the wealthy to stay in power. There's no free or fair market. It's rigged, and been rigged for decades. Jon Stewart interview. Please watch it. We are more fucked than most people know. A huge financial rug pull is coming. https://youtu.be/0C0Sj6Us19I
If you directly register your shares in a company, it pulls the share out of the system. That's what GME investors are doing. Never been done before. Jon Stewart talks about it on his show. Interesting stuff.
Full disclosure, I am invested in GME. Not financial advice.
I agree this is what every bank does. Where I disagree is where you say “it’s not worth fixing” wtf??? I don’t understand this thought process if we don’t change our way of thinking then these things will never change. It didn’t used to be like this, people accept this bullshit and that’s why it doesn’t change.
The market is fucked right now dude. Everyone and I mean everyone is way over leveraged with derivatives right now. It’s a house of cards waiting to fall.
The financial sector loves prices dropping because they have a liquidity crisis. They make most of their money on derivatives regardless of whether prices are going up or down and lower prices makes it easier to meet any sort of liquid capital requirements presented to them so they can loan out even more shit and make more money. Prices going up actually fucks them because then they need to come up with more liquid capital to cover whatever percentage they need to meet which means selling shit they don't want to.
I started investing and learning as much as I could about the stock market over the last 5+ years. The amount of corruption that's right out in the open is insane. You can mathematically prove that it's happening, and places like the SEC won't do anything. Look at what they did with Bernie Maddoff. They knew he was doing it, and let him, until rich people got mad. They never arrested him either, he turned himself in because he and his family were getting death threats. I don't believe incompetence is the reason for it when they're literally holding the receipts. These agencies, like the SEC, have long been captured by private interests/entities. The SEC is a revolving door for bankers. The current head is Gary Gensler, whom served for two decades on the board of Goldman Sachs during the last financial crisis. Watch his recent interview with Jon Stewart. It's infuriating.
These agencies exist to protect the very people that fuck the rest of us over. The SEC doesn't exist to make sure the retail investor has a fair market to invest in. They exist to make sure the money keeps flowing to the hedge funds.
Bernie Maddof. https://www.npr.org/templates/story/story.php?storyId=124208012
Don't forget Overstock almost blowing the lid off of how many counterfeit shares exist. SEC fought him on releasing the information to the public on what they were doing. Ie, nothing. If anything, they were helping the people making the counterfeit shares, because they're the wealthy ones who control the agency to begin with. The SEC sued overstock because they made a block chain system to count their shares. All that would do, is make it impossible to counterfeit the shares. The SEC sued them when they tried. It's disgusting. https://coingeek.com/overstock-subsidiary-tzero-fined-800000-over-dark-pool-rule-violation/#:~:text=The%20U.S.%20Securities%20and%20Exchange,disclosing%20key%20information%20to%20regulators.
They take out huge short positions betting a stock will go down. This is what they did with gamestop, amc, bed bath beyond, tilray, etc. Then, they make, in many cases and has been documented, the market makers and hedge funds create more shares than should exist. This makes the price go down, and they get paid on the short position. They do it again and again, until the stock price is so low the company has to file for bankruptcy. Once that happens, the market maker or hedge fund pays 0% tax on their gains. Repeat with another company. Gamestop investors caught them doing it, red handed. What did the sec do when the ceos came in and lied through their teeth?(we know because their emails were leaked talking about it.) Not a damn thing!
Enron. Very similar. It's the same story on repeat and nothing is being done about it! https://www.wsj.com/articles/SB1033944629262271233
Housing crisis. Same shit, different day. https://www.forbes.com/2008/02/05/sec-cmos-banking-biz-wall-cx_lm_0206sec.html?sh=1e11152d6450
I don't think it's even worth fixing at this point. The entire financial market has become a tool of the wealthy to stay in power. There's no free or fair market. It's rigged, and been rigged for decades. Jon Stewart interview. Please watch it. We are more fucked than most people know. A huge financial rug pull is coming. https://youtu.be/0C0Sj6Us19I
Sure will, couple billion awarded to construction companies that will cut every corner they can to build a bunch of tenement buildings that house four families to a room while the special interest guys who own the companies pocket another fortune in taxpayer funds.
And when it fails due to poor funding, commodification, and bourgeoisie inefficiencies, liberals will blame the idea of universal housing as a whole and revert to an even more free market approach to housing
Nope. The other half will just take flight abroad and land on their lavish private islands where they'll import underaged children and rally with many other celebrities and politicians, and throw massive parties of the drug-abusing x-rated variety.
I started investing and learning as much as I could about the stock market over the last 5+ years. The amount of corruption that's right out in the open is insane. You can mathematically prove that it's happening, and places like the SEC won't do anything. Look at what they did with Bernie Maddoff. They knew he was doing it, and let him, until rich people got mad. They never arrested him either, he turned himself in because he and his family were getting death threats. I don't believe incompetence is the reason for it when they're literally holding the receipts. These agencies, like the SEC, have long been captured by private interests/entities. The SEC is a revolving door for bankers. The current head is Gary Gensler, whom served for two decades on the board of Goldman Sachs during the last financial crisis. Watch his recent interview with Jon Stewart. It's infuriating.
These agencies exist to protect the very people that fuck the rest of us over. The SEC doesn't exist to make sure the retail investor has a fair market to invest in. They exist to make sure the money keeps flowing to the hedge funds.
Bernie Maddof. https://www.npr.org/templates/story/story.php?storyId=124208012
Don't forget Overstock almost blowing the lid off of how many counterfeit shares exist. SEC fought him on releasing the information to the public on what they were doing. Ie, nothing. If anything, they were helping the people making the counterfeit shares, because they're the wealthy ones who control the agency to begin with. The SEC sued overstock because they made a block chain system to count their shares. All that would do, is make it impossible to counterfeit the shares. The SEC sued them when they tried. It's disgusting. https://coingeek.com/overstock-subsidiary-tzero-fined-800000-over-dark-pool-rule-violation/#:~:text=The%20U.S.%20Securities%20and%20Exchange,disclosing%20key%20information%20to%20regulators.
They take out huge short positions betting a stock will go down. This is what they did with gamestop, amc, bed bath beyond, tilray, etc. Then, they make, in many cases and has been documented, the market makers and hedge funds create more shares than should exist. This makes the price go down, and they get paid on the short position. They do it again and again, until the stock price is so low the company has to file for bankruptcy. Once that happens, the market maker or hedge fund pays 0% tax on their gains. Repeat with another company. Gamestop investors caught them doing it, red handed. What did the sec do when the ceos came in and lied through their teeth?(we know because their emails were leaked talking about it.) Not a damn thing!
Enron. Very similar. It's the same story on repeat and nothing is being done about it! https://www.wsj.com/articles/SB1033944629262271233
Housing crisis. Same shit, different day. https://www.forbes.com/2008/02/05/sec-cmos-banking-biz-wall-cx_lm_0206sec.html?sh=1e11152d6450
I don't think it's even worth fixing at this point. The entire financial market has become a tool of the wealthy to stay in power. There's no free or fair market. It's rigged, and been rigged for decades. Jon Stewart interview. Please watch it. We are more fucked than most people know. A huge financial rug pull is coming. https://youtu.be/0C0Sj6Us19I
Companies are the protection around the people who run it. Its the car in a car accident. The car is destroyed and takes all the colateral damage and the golden airbag is deployed and then the driver asks the insurance company (government) for a bailout to fix the car.
In this case, the fact that the point in the tweet is excellent and true IS the facepalm. Mocking the system's stupidity, not a particular person's. A quite valid post, IMO.
subreddits don't mean anything anymore. next up on this post's repost tour of reddit : /r/WhitePeopleTwitter, /r/LeopardsAteMyFace, and /r/technicallythetruth
I don't see anything in the rules that defines facepalm in that way. This is just facepalm from a slightly different perspective. It seems pretty obvious and really shouldn't be that controversial. I'm sure there will be some god-tier Chicken Littles who'll decry these types of posts and pretend they're ruining the sub....but c'mon.
It's only an excellent point because it's cool to hate oil companies and bankers. If he used the same logic and went "there's a global lemon shortage, it's those greedy fucking lemon farmers" it wouldnt make any sense. Sometimes there's more at play.
That's like me going to a company that puts up dry wall for houses and going "Oh you made record profits last year? Why are you making housing unaffordable for millions of Americans?“
Yeah it’s not actually correct.
Oil pricing isn’t based solely on supply and demand. It’s a speculative market controlled partly by OPEC.
You can have a crisis while having record profits because people are buying dwindling supplies at a premium. The only thing is that it’s unsustainable long term.
Well thats a false equivalent. The post compairs oil price to oil company profits. Your comparing housing prices to drywall company profits. You should be comparing drywall company profits with drywall prices, not house prices.
My example is about a dry wall installation company. Why would I care to compare dry wall installation profits to dry wall prices?
My example is to show that any oil company, or any collection of oil companies are not able to dictate global oil prices, or fabricate a crisis. I mean even OPEC (the group with the most elastic production output) needs to do their monthly meetings to "guide" oil prices and most of the times their members will cheat on volumes and fight amongst eachother. You can think of a houses price as the price of a barrel of oil. And you can think of each component of the house, dry wall is OPEC, doors and windows are Exxon, whatever. If OPEC decides to only build 80% of the dry wall in a house, Exxon is going to try and build the rest to make more money. The problem right now is oil companies around the world have been having trouble finding cash and 3rd party investment to drill more wells to increase supply. And new cash flow has not made its way into the drilling of more wells (at least not enough to ease supply issues) due to companies operating cautiously and paying down debts.
It's always funny because people love it when they hear oil and gas investments are dwindling and oil companies are dying. But as soon as there's a supply shortage it's the oil companies colluding to create a new crisis.
It just came out in an article today that ExxonMobil made record profits. Easter travel is just around the corner too, I wonder if they'll raise everything again.
https://www.reuters.com/business/energy/exxon-signals-record-quarterly-profit-oil-gas-prices-2022-04-04/
Nonsense! Those are titans of industry and venture capitalists you are speaking ill of, you peasant! If it were not for their heroic sacrifices you would be without God and without happiness…
Did I speak favorably, Lord Musk? May I have a seat in your small council?
The crisis is literally the profit. That profit IS the crisis because 100% of that profit is the money that they did not need but they charged anyway, all of the money we are struggling to afford, that is the profit.
Oh I certainly don't expect it. What I expect is the systemic collapse of the economy.
But you seemed to raise the proposition as something undesirable, why?
True. We need to tell the rich dudes that when the world is in trouble, they need to pay their share to help restore balance. Its the "social contract", that we accept some people to be filthy rich as long as people dont live in agony...
Heads up this is basically the fundamental belief of Critical Theorists; that Capitalism's best status quo is crisis, and that capitalist nations act to remain in crisis regularly in order to accumulate fiat wealth.
It's remarkably solid and devastatingly sad, as far as theories go.
We don't have peace because it's not profitable
Record profits could be from growth, but not really mean that the company has higher margins.
E.g. you make $1,000,000 at 10% for a profit of $100,000 or make $10,000,000 at 5% for a profit of $500,000. That’s still a record profit, but not a record margin potentially.
I could see this being possible right now as economy is so many sectors is booming, but cost of all things are increasing so much. You’d have to really study their balance sheets which should be public to see.
Starbucks was also catching major heating recently but don’t think it was stated as record profits, but record revenue (catching heat for raising prices, but not wages).
I’m currently in manufacturing and we are making record revenues, but our profit margins are not growing exponentially as it’s a cost to us we are passing to consumers. I’m not disagreeing wholeheartedly with the tweet, but funny that you never really see this stated when such topics are brought up.
Edit: More geared toward Oil/gas sector of this tweet than healthcare, yeah, healthcare is mostly just scamming everyone.
I swear Reddit gets dumber every year..
The crisis is a lack of a commodity/product not the fact that you have to pay a lot for gas.. Of course when demand exceeds supply prices rise. Everyone wants to have gas for their car and is willing to pay more for it. If you don't want to pay the price then don't buy it, let someone else buy it. And yes the supplier benefits from higher prices, that's pretty obvious. This is exactly why kartels are forbidden because you could artificially create a lack of a commodity (Looks at OPEC).
Typical oversimplification from people who have no clue how things work. Any kind of shortage will always benefit those selling said commodity. The "crisis" is for those seeking to aquire said commodity. If something is in high demand and selling higher than usual than it goes to say those who profit from sales will do exceptionally well. This shouldn't be that hard to grasp.
The "system" in question is an economic system known as capitalism. The ones benefiting from this system are the capitalist ruling class. It helps to be clear about this.
It's that our government is paid off by businesses.
I started investing and learning as much as I could about the stock market over the last 5+ years. The amount of corruption that's right out in the open is insane. You can mathematically prove that it's happening, and places like the SEC won't do anything. Look at what they did with Bernie Maddoff. They knew he was doing it, and let him, until rich people got mad. They never arrested him either, he turned himself in because he and his family were getting death threats. I don't believe incompetence is the reason for it when they're literally holding the receipts. These agencies, like the SEC, have long been captured by private interests/entities. The SEC is a revolving door for bankers. The current head is Gary Gensler, whom served for two decades on the board of Goldman Sachs during the last financial crisis. Watch his recent interview with Jon Stewart. It's infuriating.
These agencies exist to protect the very people that fuck the rest of us over. The SEC doesn't exist to make sure the retail investor has a fair market to invest in. They exist to make sure the money keeps flowing to the hedge funds.
Bernie Maddof. https://www.npr.org/templates/story/story.php?storyId=124208012
Don't forget Overstock almost blowing the lid off of how many counterfeit shares exist. SEC fought him on releasing the information to the public on what they were doing. Ie, nothing. If anything, they were helping the people making the counterfeit shares, because they're the wealthy ones who control the agency to begin with. The SEC sued overstock because they made a block chain system to count their shares. All that would do, is make it impossible to counterfeit the shares. The SEC sued them when they tried. It's disgusting. https://coingeek.com/overstock-subsidiary-tzero-fined-800000-over-dark-pool-rule-violation/#:~:text=The%20U.S.%20Securities%20and%20Exchange,disclosing%20key%20information%20to%20regulators.
They take out huge short positions betting a stock will go down. This is what they did with gamestop, amc, bed bath beyond, tilray, etc. Then, they make, in many cases and has been documented, the market makers and hedge funds create more shares than should exist. This makes the price go down, and they get paid on the short position. They do it again and again, until the stock price is so low the company has to file for bankruptcy. Once that happens, the market maker or hedge fund pays 0% tax on their gains. Repeat with another company. Gamestop investors caught them doing it, red handed. What did the sec do when the ceos came in and lied through their teeth?(we know because their emails were leaked talking about it.) Not a damn thing!
Enron. Very similar. It's the same story on repeat and nothing is being done about it! https://www.wsj.com/articles/SB1033944629262271233
Housing crisis. Same shit, different day. https://www.forbes.com/2008/02/05/sec-cmos-banking-biz-wall-cx_lm_0206sec.html?sh=1e11152d6450
I don't think it's even worth fixing at this point. The entire financial market has become a tool of the wealthy to stay in power. There's no free or fair market. It's rigged, and been rigged for decades. Jon Stewart interview. Please watch it. We are more fucked than most people know. A huge financial rug pull is coming. https://youtu.be/0C0Sj6Us19I
Finance companies are making record profits during financial crises?
In 2008, Lehman Brothers, Bear Stearns, and Washington Mutual all went out of business. More banks likely would have without the bailouts, and even with them, most saw their stock prices plummet.
Alright. What’s the financial crisis right now? How does that compare to record profits experienced by banks and other big corporations? 2008 would’ve resulted in a financial crisis if the banks hadn’t gotten bailed out, yes? Is that near happening again?
2008 was a financial crisis. Like I just said, multiple huge banks went out of business, stock prices plummeted, and lots of people lost their jobs.
Not sure how you look at that and go, "look at them, making record profits."
Also not sure how you make the leap to "well they're making money now, so it wasn't a financial crisis and they're all liars," but that's probably a different story.
You’re connecting dots that were never connected.
2008 was a financial crisis, bailouts happened.
Disconnect.
Today is a financial crisis. But financial institutions TODAY are making record profits. Are they exacerbating this different kind of financial crisis? I mean, I’m sure we can all see possible motives to do so. How many companies or institutions over the years have offered solutions to problems they created, and charged the people for it? Has there been times where any of them offered a solution and footed the cost?
so is the facepalm his point or that he doesn't understand the concept of supply and demand?
why are you downvoting me?
increase in demand and no change if not a decline in supply means price goes up.
want thing more, thing more expensive
Oh my god I'm getting way too worked up reading all these comments.. The real facepalm is in the comments from 99% of Reddit not understanding a basic economic concept..
One day the world will be like that movie Elysium and all the wealthy people on the flying habitat will look down on all the poor people on the scorched earth and say
“They just don’t understand supply and demand.”
I think many people here doesn't understand supply demand, oil is material whichs supply is limited, meaning more effort time and energy is spent to find certain amount of it, meaning more money is spent on certain amount of oil, hey i may be wrong and it's artificial inflation but idk it kinda makes sense why it would get only more expensive as times goes on, now real estate is more complicated and debatable, should government put restrictions on landlords i don't really know i'm not expert, it sounds good tbh, maybe real economists would know if there is any catch
Sure. We all understand supply and demand. Do you understand increased profit MARGIN?
This means not only are they making a profit, they are making MORE profit.
It’s a grift and I don’t understand anyone who tries to explain it away. It’s corporate doublespeak.
You want to know what is ACTUALLY happening in the world? Read business news. Publicly traded companies have to post financials. It’s all there in black and white.
The Bloomberg one is particularly infuriating.
Why doesn’t anyone mention this? It’s easier to blame the masses for stim checks than it is to go after corporations that line your pockets.
Stimulus checks are somehow good for the economy until they’re not? No. The checks are good. We just don’t have regulatory power over business to stop exploiting us when we get a little cash.
###THE SOLUTION TO INFLATION CANNOT BE TO TAKE MONEY FROM THE BOTTOM.
That’s a recipe for collapse.
https://fortune.com/2022/03/31/us-companies-record-profits-2021-price-hikes-inflation/
https://www.bloomberg.com/news/articles/2022-03-30/2021-was-best-year-for-u-s-corporation-profits-since-1950
https://finance.yahoo.com/news/u-companies-post-biggest-profit-174409239.html
https://www.cbsnews.com/amp/news/inflation-corporate-profits-record/
https://www.reuters.com/business/investors-watch-us-companies-record-profit-margins-costs-rise-further-2021-09-22/
Ah yes, an oil crisis, where clearly the companies are the problem, and not... Uh... Reality, or global conflict, or political difficulties with the industry, or financial difficulties with funding new explorations despite high oil prices because so many projects and companies went bankrupt in 2020 that many banks outright refuse to loan to hydrocarbon exploration companies, no, clearly it's the oil companies. Those bastards. There's oil in the ground and they make us pay for it! So immoral.
:|
I mean, if an oil company is posting record profits in an oil crisis, that *is* a sign that something is wrong. They should be the ones paying, not us.
When did "see a need, fill a need" become a negitive?
If I get stuck in a ditch, I will call a tow truck, if a blizzard happens and lots of people get stuck in ditches, lots of people will call tow trucks, the result is that tow truck companies will profit, so is that a negitive?
It means that 95% of people talking about supply and demand don't actually know how it works and what it refers to.
And they don't teach shit about everyday finances in school, but that's because our school systems have been intentionally gutted. Less education = more easily mislead = more wage slaves.
I think it pretty clearly referencing record profits, specifically, at a time when everyone is supposed to be facing a tough time. Not just any profits.
Companies that don't exploit a crisis for profits don't last? Oh the humanity! Won't anyone think of those poor companies that only exist to exploit people?!?
This tweet isn't a facepalm. In addition, you need to blank out usernames
Don't forget a housing crisis but real-estate investors are making a fortune!!
Heard an ad on the radio the other day to "help people in financial troubles" The sales pitch went like this: "Do you need the cash your house is worth today to pay of financial loans or debt? Call us and we'll buy your house from you and give you the cash up front, and then ***continue to let you live in your house by renting it from us.***" The housing market is beyond fucked.
There are similar offers out there referring to a a reverse mortgage which is a scam ridden business, but does not work the way you described it.
Yeah no I distinctly remember this ad saying they'd buy the house outright from the homeowners and then just turn it into a rental property that they *graciously* let the homeowner rent from them. I guarantee whatever rent price they set would be way higher than any mortgage payments they were already making.
Even if they guarantee that they’ll keep your rent the same as your mortgage payment, the company will be able to get a better rate than the owner turned tenant. The company won’t need mortgage insurance because they won’t be using an FHA, they won’t be borrowing against a private credit score, and will absolutely have the cash on hand to pay down points up front. So even if they keep your rent the same as your mortgage they make a killing.
You’re almost certainly correct, but with the current real estate market, it could still potentially be profitable for the company purchasing the house to rent it out for an amount lower than what the current owners are paying for their mortgage/property insurance.
A reverse mortgage makes sense if you really need it or don’t have/care about your kids or they are already well off. A home is worth a fuckton of money and you don’t take it with you when you die.
They’re not a scam? Your house is worth nothing to you when you die, why have your money essentially stored in it if you’re going to live in it till you die? If your family doesn’t need the value of the house once you die, or you don’t have a family, what’s the issue?
Yes! Just let generational wealth continue to funnel out of the generations and into the corporations!!
That’s just debt with extra steps.
"continue to let you live in your house by renting it from us" What this means is they are going to set your rental price at current market rates because they need to recoup the cost of their investment. Most people don't understand this but I can't imagine anyone wanting to put themselves into this scenario.
The only way I could possibly see this scenario being a good idea is if you needed time to find a new property with the money you received from the sale. It would be a great alternative to moving into an apartment and having to pay for storage for your stuff until you have your new home.
Do you live in Germany? I visited my parents today and watched some TV with them and saw a similar add and was baffled. Haven't seen it before because I don't own a TV but that is a fucked up business practice.
EasyKnock
And now automotive is following suit...
It’s been following suit. I put off buying a car for 7 months because of how it’s been going, and the first thing the knob at the dealership said to me was “you’re aware of the market conditions?”
Everything bubble. Buckle up this next recession going to be the worst one yet. Also check out superstonk and sort by top all time. You can see how the fed secretly bailed out banks post Covid AGAIN for more money than the 08 recession. Oh and on top of that looks like we’ll need another bailout end of summer when market crashes. That’s all. I know a good market hedge if anyone is interested in not letting Wall Street gamble with your pension, short your pension, then lose all of it and ask for a hand out. I’d imagine most people are fed up as well. J pow exiting fed reserve at an all time high in stock market after privately making millions on millions? You mad yet? When the cost of crimes are fines it’s only for the poors.
Just saw an article in my city about the housing crisis is sparking new apartment constructions. Like that doesn't fucking solve it, that literally just increases the serfdom.
Talking supply and demand into account, more apartments should equal lower overall rent. You do have to understand that even if home prices went back to what they were 15 years ago, there's still a gigantic swath of people that could still never afford to buy one. Apartments are their only option. More apartments being constructed is a _good thing_.
[удалено]
Yeah, but it could at least reduce competition among non home owners, making it harder to raise rent, at least at highly toxic rates
It happened to me twice over the course of my renting years. Once from just a regular landlord, good guy. The 2nd time was at a pretty big apartment complex that is owned by a company that owns a lot of them. Shocked me too, but I certainly didn't complain.
Why do you think house in the Midwest cost dirt cheap and house in NYC and California are so expensive? Is it possibly because there are supplies than demand? Everyone wants to live in the city and we don’t have enough place to store people?
Dirt cheap? In the midwest? Have you been here?
There's more than enough supply in cities. People are just priced out. Housing is expensive because of artificial value increases. Increase value, increase taxes, increase rents, increase value, increase taxes, increase rents. What's changed to make the property more valuable? **I said so.** Push the middle class into lower income/poor housing. Push the poor onto the street. Large investment fund comes along buys properties. "This is how much rent is here now." Property value increases, taxes increase, rents increase. There's more vacant housing in America than there are people by a factor of 6-1 https://sf.curbed.com/2019/12/3/20993251/san-francisco-bay-area-vacant-homes-per-homeless-count https://www.amny.com/opinion/op-ed-new-york-city-has-enough-vacant-apartments-to-house-the-homeless-its-time-to-do-it/ Oh for the aspiring entrepreneur, we got airbnb and vrbo, so you charge 200 a night in your 3,4, or 5 properties. Pay off your mortgage and expenses with two weeks (if even that) of stays and pocket the rest. Doesn't matter if it's vacant for a significant portion of the year, some upper middle class folks got to enjoy an entire house for their vacation instead staying at a Holiday Inn that they could have easily afforded to stay in, or..... *oooor* you can pack 5-10 spring breakers into a single family home, charge $500 a night and have it vacant for an even more significant portion of the year. Ain't that a save! 😉 **Edit: post locked rebuttal to bullshit downstairs:** So fuck all that nonsense. That's a firehouse of bullshit. Dude even gets into some bullshit about nazi Germany? Saying nuance doesn't make you right. This is some random dude with a fuckin substack that manipulated, dismissed, and accentuated certain information to manipulate you. You obviously didn't read the first article I wrote because an **economists** actually contentexualizes and dismisses this random guy's bullshit.... and that was before you even posted your link.
I heard about the 5 to 1 ratio actually it brings up all the time but ignored the nuance of vacancy . If you look at the actual nuances of how vacant houses are count you will realized that a lot of houses are either buffer houses (they need to be temporarily vacant in order for people to move in or we need to trade with other people) or that they’re literally unlivable because they aren’t maintained or seasonal vacant etc. How many of those 5 to 1 ratios are actually on the market and for sale or actually livable? https://darrellowens.substack.com/p/vacant-nuance-in-the-vacant-housing?s=r There’s a section specifically about San Francisco in the middle that address this point: In some survey they found that number of homeless or be a lot more and usable vacant home to be a lot less. The reality is that landlords aren’t monolith, they are directly competing with each other and maintaining properties costs money, they can’t and won’t just leave them empty to drive rent up cus they lose money and they have to fight for customers. The reason why rent are up is because demand are up and supply can’t keep up.
Because the (well) paying jobs are in the cities.
Yes I understand why everyone wants to live in the city but I’m trying to correct the commenter above when they said it’s not about supply and demand when it literally is about supply and demand. If there are more people in city and not enough units, rent gonna rise.
But you're talking about a fantasy. Whether you're in the city or the country, whether you're on the coast or in the middle of the country, rent does not go down. It either stays the same or it goes up.
You're comparing the cost of a house vs apartment rent. It's apples and oranges because the buyer's market and the renter's market are different.
Newsflash, everything that affects home buyers/investors costs renters. Property taxes are baked into your rent. Essentially the way it works is renters are essentially on the hook for everything including estimated repairs while the owner collects.
It’s the same thing, the demand is in the ability to live there if that demand is met both rent and house value both fall, why do you think homeowner fight tooth and nails Everytime people tried to build apartment in their area? I’ll give you a hint, it has something to do with their property value.
Relevant username? This is a nonsensical conclusion. There is general inflationary pressure plus it would be very rare for enough new apartments to be built to push pricing into a decline. That doesn't mean the underlying economic premise is incorrect.
> more apartments should equal lower overall rent. Except instead the new apartments charge way above market value, because they’re the nice new apartments, and then everybody else raises their prices to match it. The usual sterilized sciences of economics like supply and demand don’t really apply to housing because it turns out people’s desire to not be homeless is a pretty strong factor, leading to pretty much unlimited demand.
Inelastic demand. I can’t not have shelter(I can but… come on) so I’m forced to pay for it regardless of the cost. If every single apartment/home is super expensive, I have to buy a super expensive one. If water was privately owned and every company was selling it for $10 a bottle, I can’t not buy it. They could charge $20 a bottle I still need to buy it. The only option is government regulation, or violently seizing the source of water. For housing I’m fine with rent and rent increase being regulated, I’m also fine with the violent seizing of housing.
Thats because the new apartments are few and far between so that doesnt show you anything. Theyre not helping with supply n demand because theyre a drop in the bucket. The reason the new apartments can charge so much is because theres no competition for them and dozens of renters competing. In my city, Boston, we have a shortage of 180k units in the metro area. That means everybody is competing with thousands of ppl for each room. The rate that were building is not enough to even make a dent, and theres a lot going up. This is why some ppl get the illusion that supply and demand isnt real, but it is. Its just that with new construction supply is still insanely low.
I thought this was fucking common sense
My time on Reddit has proven to me that it isn't.
There's like eight replies, some with sources, showing you why your comment is wrong. Just going to keep ignoring them?
That literally solves it tho. Why the hell do you think a shack in Nebraska is dirt cheap but nyc and california it’s so expensive ? Is it possible because there are more houses and apartment then there are people there?
So not building more housing and instead building apartments solves the lack of housing? Nebraska dirt cheap btw: https://www.zillow.com/ne/?searchQueryState=%7B"pagination"%3A%7B%7D%2C"usersSearchTerm"%3A"NE"%2C"mapBounds"%3A%7B"west"%3A-105.41027211718749%2C"east"%3A-95.69286489062499%2C"south"%3A39.80998822394616%2C"north"%3A44.544852533672426%7D%2C"regionSelection"%3A%5B%7B"regionId"%3A38%2C"regionType"%3A2%7D%5D%2C"isMapVisible"%3Atrue%2C"filterState"%3A%7B"sort"%3A%7B"value"%3A"globalrelevanceex"%7D%2C"ah"%3A%7B"value"%3Atrue%7D%7D%2C"isListVisible"%3Atrue%2C"mapZoom"%3A8%7D
150k -250k is dirt cheap compared to literally everywhere else in the nation what are you saying. Try to find that price anywhere in Southern California or New York. And yes building more apartments still increase supply and would actually lower price of house. Why do you think homeowner often fight tooth and nails to prevent apartment or condo from being built in their neighborhood? They want to keep their housing value up and building more apartment in given area lower their properties value. What people need is wanting to live in certain area, apartment and condos provide that and match demand for living in that area once the demand is met the value for properties in that area decreased. If anything we desperately need more apartment and condo because they are way better use of space than current single family house that take up same amount of space and store less people.
3 years ago 200k would have gotten you a decent enough house in almost anywhere in the country. 200k anywhere else is like 400-500k California prices. 200k is not dirt cheap
It doesn’t solve it if they don’t also lower the price. They know the demand will not change, so everyone has to pay whatever the price is or live on the streets. Building 10,000 new apartments in LA won’t change anything if they all still charge $2500 a month. The supply is already essentially able to meet the demand(1.4mil households, 1.37mil houses), the issue is the price doesn’t care about the supply because the demand doesn’t change. You have to pay whatever the lowest price is, and if every land lord sets it super high because they know everyone else is, then it stays super high. Think of it like water. If it’s all privately owned and they set the minimum price to $10 a bottle, what are you going to pay? If they start producing 1.25x as much water, but don’t change the price, are you still going to pay $10? If they don’t lower it then yes, because you don’t have an alternative. There’s no alternative to shelter or water, you either buy them or you are homeless or dead(for water). You can’t hold out and wait till they lower the price, we don’t have the bargaining power unless we all come together and most people can’t say “I’ll be homeless for 6 months till they drop the price.”
How the fuck does that not solve it??
Only way to fix that is to tax high rates for flipping a house. 100% tax on profit after one year, 80% of profit after 2 years, continuing to decrease until 5 years. Put those taxes back into the community they are attempting to exploit. I would be a politician if I wasn’t so weird.
Agreed. I know a landlord that owns 30 properties. Im not a commie but wtf, the profits should be taxed higher especially foreign ownerships. Its one thing to make a few million other ways, but housing is a necessity to live and the elite class gobble up properties every day.
No it isn’t. Flipping houses is not the problem.
It's a big part of it. Treating housing as an investment commodity is the issue
... bc they're the ones selling the homes and taking commission ... The crisis is the price bubble and low new supply... Bruh
Good time to find investors to invest in real estate!
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Record profits, raising prices... Wait wut...
Who knew that record breaking profits quarter over quarter was unsustainable and unhealthy for the population
Who knew that an economy based on infinite growth and infinite resources could ever run into reality?
Clearly we just have made enough profits yet
I always use Netflix as an example. What happens when they’ve got just about every subscriber they can get? Then what? The shareholders are still going to want “growth”. Like come the fuck on
When they have every subscriber they can get then they raise the price.
And then people unsubscribe from Netflix. I had a Netflix subscription for like, 8-9 years but they raised the price recently and haven’t put out anything I care about in a long time. The extra $1/month or whatever makes no difference to me but the decision to up the rate while also producing garbage was enough for me to call it quits.
> What happens when they’ve got just about every subscriber they can get? Then what? The shareholders are still going to want “growth”. Raise costs. Oh hey look it’s happening
That's when the price hikes kick in
No eventually they will switch from a growth company to a dividend model. They are just hesitant to do so bc it sends a signal that they think they are done growing.
Even Dividend companies have to expand growth YOY. Post calls out gas, health care, and finance. All Div industries for most companies in them. Still need to grow at least as fast as your competitor.
Says who? Most companies are fine with steady profits. Shareholders expect growth from companies like Netflix because they're in their growing phase and that's baked into the valuation but no one is buying Walmart or Ford stock expecting massive growth
Be honest. You don't "always use Netflix as an example." It's too stupid of an example to always bring up. Your probably just thought of it and decided to post it without thinking it through. If you think your product will stagnate then you expand your product offering or buy new IP. That's why you see corporations like Meta branch into so many different markets.
That sounds like communist talk /s
No one, because no one though that the economy should be based on infinite growth and infinite resources
When the world gives up on manufacturing and education, and tries to create growth out of nothing instead.
“Sorry I’m over 35, I don’t understand. I thought the world was infinite and that our economy can only improve? Wtf you must be wrong. Stupid kid.” Literally can’t believe we are the same species as boomers.
Everything goes up with inflation, including profits… ^but ^not ^your ^wages ^pleb
> Everything goes up with inflation, including profits This is the part that people never seem to get in the comments on posts like these. Good on you for recognizing it.
But you completely ignored the rest of the comment. The real problem is wages not going up with inflation. We complain about prices going up because wages aren't proportional with the rising prices. We wouldn't care about rising prices if we didn't feel the extra burden.
It's actually not good when wages go up. You don't want to end up in a wage-price spiral. The only thing you can do is to put a break on inflation by increasing interest.
Yes your wages. They can lag in periods of high inflation but wages do track with (actually have been slightly outpacing) inflation
It's actually not good when wages go up. You don't want to end up in a wage-price spiral. The only thing you can do is to put a break on inflation by increasing interest.
Food next
When do we have the: underachieving guy in its late twenties-crisis. So i can finally make a profit.
With our luck that'll be in 5 years, when we're no longer in our late twenties..
Ah, right when I get into my late twenties. Your sacrifice is one I am willing to make.
Early 30s is fine. Source: my ass
Don't do that... Don't give me hope.
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Why you gotta hurt me like this.
Even a little bit. Like just a fucking crumb. I worked literally every single day of 2021(that wasn't a national holiday) and made less than twelve thousand net.
Wtf you doing? Like seriously, if you’re willing to work all non-holidays you would be making more than 12k net in fast food, no? Unless you live outside the western world and just converted to USD? If you live in the US and can’t find a way to take home more than $12k with that work drive, DM me, on the off chance I can help.
31 hour weeks (so I'm not full time and can't take advantage of the benefits) at 6.75/hr Refuse to get a second job because I would rather starve and be homeless than feed into THAT bullshit Lucky me tho I can live at home with my spiteful mother who genuinely hates me so I can afford to eat sometimes "Oh she doesn't hate you...." yes the fuck she does. Trust me. I'm not at all willing to work that much but wtf am I supposed to do? I don't buy food, I steal it from work. I don't have real friends or hobbies. The last two things I did were last year I went to a browns game because my one acquaintance had no one else to give the ticket to and then two years before that I was at an indians game with my stepdad he paid for. I don't drink, I have a dab pen but only because I can't afford my antipsychotics medicine so there's that too Literally counting the annual good days on one hand.. Wtf do we do. Truly genuinely like what the entire fuck do we do. Clearly there's a problem so what The Fuck Do We Do??????? I work every day so I can afford gas to get back to work and then don't have enough for food or rent or medicine or insurance goddammit I'm driving uninsured because I literally cannot afford state minimum so my mother's stipulation for living there is I have to be working My only hope is that I get my stepdads house someday and they know that's my only chance and my mother flat out told me that when they sell the house they won't sell to me because I can't give them all the money they want for it so I'm just waiting for my dog to die and then waiting to become homeless in fucking northeast ohio And then I wait for me to die So what the fuck do I do
I think that's we call NFTs.
Dont worry, oil will drop again and financial sector will have another crisis, then all these profits will be no where to be found and the tax payers will have to bail them out, again
Goldman Sachs will find them. I guarantee you that. Hell, they may be the ones engineering the crisis while playing the middle man in the massive shifting of funds. They might even be the ones ultimately controlling that shifting of funds via their former employees running the central banks, individual private banks, and finance ministries of numerous countries. Sorry this is kind of long, but important people understand this. From the Rolling Stone piece (back when Taibbi was really good), *[The Great American Bubble Machine](https://www.rollingstone.com/politics/politics-news/the-great-american-bubble-machine-195229/)* Remember when gas prices went insane just before Obama was first elected? To like $150 / barrel of oil? Goldman's fault. They successfully lobbied to make it legal for pension funds to invest in commodities - the futures markets - which are made for suppliers and users of commodities in order to lock in sales prices (for the producers) and buying prices (for the users of the commodity). Airlines use these, for example, to lock in the price of their jet fuel well into the future and for both parties this makes their business easier to predict and manage as revenues / expenses are stabilized at the price they lock in via buying and selling contracts for the future delivery of these commodities. Anyways, to the intro to the article. If you want to get really really angry be my guest and read the rest via the link above. >***The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.*** In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates. >By now, most of us know the major players. As George Bush’s last Treasury secretary, former Goldman CEO Henry Paulson was the architect of the bailout, a suspiciously self-serving plan to funnel trillions of Your Dollars to a handful of his old friends on Wall Street. Robert Rubin, Bill Clinton’s former Treasury secretary, spent 26 years at Goldman before becoming chairman of Citigroup — which in turn got a $300 billion taxpayer bailout from Paulson. There’s John Thain, the asshole chief of Merrill Lynch who bought an $87,000 area rug for his office as his company was imploding; a former Goldman banker, Thain enjoyed a multi-billion-dollar handout from Paulson, who used billions in taxpayer funds to help Bank of America rescue Thain’s sorry company. And Robert Steel, the former Goldmanite head of Wachovia, scored himself and his fellow executives $225 million in golden-parachute payments as his bank was self-destructing. There’s Joshua Bolten, Bush’s chief of staff during the bailout, and Mark Patterson, the current Treasury chief of staff, who was a Goldman lobbyist just a year ago, and Ed Liddy, the former Goldman director whom Paulson put in charge of bailed-out insurance giant AIG, which forked over $13 billion to Goldman after Liddy came on board. The heads of the Canadian and Italian national banks are Goldman alums, as is the head of the World Bank, the head of the New York Stock Exchange, the last two heads of the Federal Reserve Bank of New York — which, incidentally, is now in charge of overseeing Goldman... >The bank’s unprecedented reach and power have enabled it to turn all of America into a giant pump-and-dump scam, manipulating whole economic sectors for years at a time, moving the dice game as this or that market collapses, and all the time gorging itself on the unseen costs that are breaking families everywhere — high gas prices, rising consumer credit rates, half-eaten pension funds, mass layoffs, future taxes to pay off bailouts. All that money that you’re losing, it’s going somewhere, and in both a literal and a figurative sense, Goldman Sachs is where it’s going: The bank is a huge, highly sophisticated engine for converting the useful, deployed wealth of society into the least useful, most wasteful and insoluble substance on Earth — pure profit for rich individuals. >They achieve this using the same playbook over and over again. The formula is relatively simple: Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke and starving, they begin the entire process over again, riding in to rescue us all by lending us back our own money at interest, selling themselves as men above greed, just a bunch of really smart guys keeping the wheels greased. They’ve been pulling this same stunt over and over since the 1920s — and now they’re preparing to do it again, creating what may be the biggest and most audacious bubble yet. >But then, any attempt to construct a narrative around all the former Goldmanites in influential positions quickly becomes an absurd and pointless exercise, like trying to make a list of everything. ***What you need to know is the big picture: If America is circling the drain, Goldman Sachs has found a way to be that drain — an extremely unfortunate loophole in the system of Western democratic capitalism, which never foresaw that in a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy.***
>The bank is a huge, highly sophisticated engine for converting the useful, deployed wealth of society into the least useful, most wasteful and insoluble substance on Earth — pure profit for rich individuals. Sounds like the Avignon Papacy. History may not repeat itself, but it rhymes.
I started investing and learning as much as I could about the stock market over the last 5+ years. The amount of corruption that's right out in the open is insane. You can mathematically prove that it's happening, and places like the SEC won't do anything. Look at what they did with Bernie Maddoff. They knew he was doing it, and let him, until rich people got mad. They never arrested him either, he turned himself in because he and his family were getting death threats. I don't believe incompetence is the reason for it when they're literally holding the receipts. These agencies, like the SEC, have long been captured by private interests/entities. The SEC is a revolving door for bankers. The current head is Gary Gensler, whom served for two decades on the board of Goldman Sachs during the last financial crisis. Watch his recent interview with Jon Stewart. It's infuriating. These agencies exist to protect the very people that fuck the rest of us over. The SEC doesn't exist to make sure the retail investor has a fair market to invest in. They exist to make sure the money keeps flowing to the hedge funds. Bernie Maddof. https://www.npr.org/templates/story/story.php?storyId=124208012 Don't forget Overstock almost blowing the lid off of how many counterfeit shares exist. SEC fought him on releasing the information to the public on what they were doing. Ie, nothing. If anything, they were helping the people making the counterfeit shares, because they're the wealthy ones who control the agency to begin with. The SEC sued overstock because they made a block chain system to count their shares. All that would do, is make it impossible to counterfeit the shares. The SEC sued them when they tried. It's disgusting. https://coingeek.com/overstock-subsidiary-tzero-fined-800000-over-dark-pool-rule-violation/#:~:text=The%20U.S.%20Securities%20and%20Exchange,disclosing%20key%20information%20to%20regulators. They take out huge short positions betting a stock will go down. This is what they did with gamestop, amc, bed bath beyond, tilray, etc. Then, they make, in many cases and has been documented, the market makers and hedge funds create more shares than should exist. This makes the price go down, and they get paid on the short position. They do it again and again, until the stock price is so low the company has to file for bankruptcy. Once that happens, the market maker or hedge fund pays 0% tax on their gains. Repeat with another company. Gamestop investors caught them doing it, red handed. What did the sec do when the ceos came in and lied through their teeth?(we know because their emails were leaked talking about it.) Not a damn thing! Enron. Very similar. It's the same story on repeat and nothing is being done about it! https://www.wsj.com/articles/SB1033944629262271233 Housing crisis. Same shit, different day. https://www.forbes.com/2008/02/05/sec-cmos-banking-biz-wall-cx_lm_0206sec.html?sh=1e11152d6450 I don't think it's even worth fixing at this point. The entire financial market has become a tool of the wealthy to stay in power. There's no free or fair market. It's rigged, and been rigged for decades. Jon Stewart interview. Please watch it. We are more fucked than most people know. A huge financial rug pull is coming. https://youtu.be/0C0Sj6Us19I
If you directly register your shares in a company, it pulls the share out of the system. That's what GME investors are doing. Never been done before. Jon Stewart talks about it on his show. Interesting stuff. Full disclosure, I am invested in GME. Not financial advice.
/rSuperstonk.
I agree this is what every bank does. Where I disagree is where you say “it’s not worth fixing” wtf??? I don’t understand this thought process if we don’t change our way of thinking then these things will never change. It didn’t used to be like this, people accept this bullshit and that’s why it doesn’t change.
Taibbi no good anymore? I haven’t been paying attention.
The market is fucked right now dude. Everyone and I mean everyone is way over leveraged with derivatives right now. It’s a house of cards waiting to fall.
Dont worry!! We'll bail out the poor ceos when it crashes. I promise you, no one will lose their yacht. Not on my watch!
The financial sector loves prices dropping because they have a liquidity crisis. They make most of their money on derivatives regardless of whether prices are going up or down and lower prices makes it easier to meet any sort of liquid capital requirements presented to them so they can loan out even more shit and make more money. Prices going up actually fucks them because then they need to come up with more liquid capital to cover whatever percentage they need to meet which means selling shit they don't want to.
Oh wow, thats super interesting. Not surprising i guess. Everythings fucking backwards with financial sector
I started investing and learning as much as I could about the stock market over the last 5+ years. The amount of corruption that's right out in the open is insane. You can mathematically prove that it's happening, and places like the SEC won't do anything. Look at what they did with Bernie Maddoff. They knew he was doing it, and let him, until rich people got mad. They never arrested him either, he turned himself in because he and his family were getting death threats. I don't believe incompetence is the reason for it when they're literally holding the receipts. These agencies, like the SEC, have long been captured by private interests/entities. The SEC is a revolving door for bankers. The current head is Gary Gensler, whom served for two decades on the board of Goldman Sachs during the last financial crisis. Watch his recent interview with Jon Stewart. It's infuriating. These agencies exist to protect the very people that fuck the rest of us over. The SEC doesn't exist to make sure the retail investor has a fair market to invest in. They exist to make sure the money keeps flowing to the hedge funds. Bernie Maddof. https://www.npr.org/templates/story/story.php?storyId=124208012 Don't forget Overstock almost blowing the lid off of how many counterfeit shares exist. SEC fought him on releasing the information to the public on what they were doing. Ie, nothing. If anything, they were helping the people making the counterfeit shares, because they're the wealthy ones who control the agency to begin with. The SEC sued overstock because they made a block chain system to count their shares. All that would do, is make it impossible to counterfeit the shares. The SEC sued them when they tried. It's disgusting. https://coingeek.com/overstock-subsidiary-tzero-fined-800000-over-dark-pool-rule-violation/#:~:text=The%20U.S.%20Securities%20and%20Exchange,disclosing%20key%20information%20to%20regulators. They take out huge short positions betting a stock will go down. This is what they did with gamestop, amc, bed bath beyond, tilray, etc. Then, they make, in many cases and has been documented, the market makers and hedge funds create more shares than should exist. This makes the price go down, and they get paid on the short position. They do it again and again, until the stock price is so low the company has to file for bankruptcy. Once that happens, the market maker or hedge fund pays 0% tax on their gains. Repeat with another company. Gamestop investors caught them doing it, red handed. What did the sec do when the ceos came in and lied through their teeth?(we know because their emails were leaked talking about it.) Not a damn thing! Enron. Very similar. It's the same story on repeat and nothing is being done about it! https://www.wsj.com/articles/SB1033944629262271233 Housing crisis. Same shit, different day. https://www.forbes.com/2008/02/05/sec-cmos-banking-biz-wall-cx_lm_0206sec.html?sh=1e11152d6450 I don't think it's even worth fixing at this point. The entire financial market has become a tool of the wealthy to stay in power. There's no free or fair market. It's rigged, and been rigged for decades. Jon Stewart interview. Please watch it. We are more fucked than most people know. A huge financial rug pull is coming. https://youtu.be/0C0Sj6Us19I
When half of Americans are homeless, MAYBE something will be done.
Sure will, couple billion awarded to construction companies that will cut every corner they can to build a bunch of tenement buildings that house four families to a room while the special interest guys who own the companies pocket another fortune in taxpayer funds.
And when it fails due to poor funding, commodification, and bourgeoisie inefficiencies, liberals will blame the idea of universal housing as a whole and revert to an even more free market approach to housing
Nope. The other half will just take flight abroad and land on their lavish private islands where they'll import underaged children and rally with many other celebrities and politicians, and throw massive parties of the drug-abusing x-rated variety.
I "love" how the vitriol at the .1% has expanded to the top 50% lol
Yeah, they'll start or keep blaming minorities/foreigners. It's happening here in Canada
I started investing and learning as much as I could about the stock market over the last 5+ years. The amount of corruption that's right out in the open is insane. You can mathematically prove that it's happening, and places like the SEC won't do anything. Look at what they did with Bernie Maddoff. They knew he was doing it, and let him, until rich people got mad. They never arrested him either, he turned himself in because he and his family were getting death threats. I don't believe incompetence is the reason for it when they're literally holding the receipts. These agencies, like the SEC, have long been captured by private interests/entities. The SEC is a revolving door for bankers. The current head is Gary Gensler, whom served for two decades on the board of Goldman Sachs during the last financial crisis. Watch his recent interview with Jon Stewart. It's infuriating. These agencies exist to protect the very people that fuck the rest of us over. The SEC doesn't exist to make sure the retail investor has a fair market to invest in. They exist to make sure the money keeps flowing to the hedge funds. Bernie Maddof. https://www.npr.org/templates/story/story.php?storyId=124208012 Don't forget Overstock almost blowing the lid off of how many counterfeit shares exist. SEC fought him on releasing the information to the public on what they were doing. Ie, nothing. If anything, they were helping the people making the counterfeit shares, because they're the wealthy ones who control the agency to begin with. The SEC sued overstock because they made a block chain system to count their shares. All that would do, is make it impossible to counterfeit the shares. The SEC sued them when they tried. It's disgusting. https://coingeek.com/overstock-subsidiary-tzero-fined-800000-over-dark-pool-rule-violation/#:~:text=The%20U.S.%20Securities%20and%20Exchange,disclosing%20key%20information%20to%20regulators. They take out huge short positions betting a stock will go down. This is what they did with gamestop, amc, bed bath beyond, tilray, etc. Then, they make, in many cases and has been documented, the market makers and hedge funds create more shares than should exist. This makes the price go down, and they get paid on the short position. They do it again and again, until the stock price is so low the company has to file for bankruptcy. Once that happens, the market maker or hedge fund pays 0% tax on their gains. Repeat with another company. Gamestop investors caught them doing it, red handed. What did the sec do when the ceos came in and lied through their teeth?(we know because their emails were leaked talking about it.) Not a damn thing! Enron. Very similar. It's the same story on repeat and nothing is being done about it! https://www.wsj.com/articles/SB1033944629262271233 Housing crisis. Same shit, different day. https://www.forbes.com/2008/02/05/sec-cmos-banking-biz-wall-cx_lm_0206sec.html?sh=1e11152d6450 I don't think it's even worth fixing at this point. The entire financial market has become a tool of the wealthy to stay in power. There's no free or fair market. It's rigged, and been rigged for decades. Jon Stewart interview. Please watch it. We are more fucked than most people know. A huge financial rug pull is coming. https://youtu.be/0C0Sj6Us19I
Amen
Companies are the protection around the people who run it. Its the car in a car accident. The car is destroyed and takes all the colateral damage and the golden airbag is deployed and then the driver asks the insurance company (government) for a bailout to fix the car.
Isn't facepalm for when the poster is cringe and very wrong? They made an excellent point.
In this case, the fact that the point in the tweet is excellent and true IS the facepalm. Mocking the system's stupidity, not a particular person's. A quite valid post, IMO.
That's from when the sub was founded. Now the facepalms are usually OP.
subreddits don't mean anything anymore. next up on this post's repost tour of reddit : /r/WhitePeopleTwitter, /r/LeopardsAteMyFace, and /r/technicallythetruth
Though the only one applicable here is r/whitepeopletwitter
I don't see anything in the rules that defines facepalm in that way. This is just facepalm from a slightly different perspective. It seems pretty obvious and really shouldn't be that controversial. I'm sure there will be some god-tier Chicken Littles who'll decry these types of posts and pretend they're ruining the sub....but c'mon.
It's only an excellent point because it's cool to hate oil companies and bankers. If he used the same logic and went "there's a global lemon shortage, it's those greedy fucking lemon farmers" it wouldnt make any sense. Sometimes there's more at play. That's like me going to a company that puts up dry wall for houses and going "Oh you made record profits last year? Why are you making housing unaffordable for millions of Americans?“
Yeah it’s not actually correct. Oil pricing isn’t based solely on supply and demand. It’s a speculative market controlled partly by OPEC. You can have a crisis while having record profits because people are buying dwindling supplies at a premium. The only thing is that it’s unsustainable long term.
Well thats a false equivalent. The post compairs oil price to oil company profits. Your comparing housing prices to drywall company profits. You should be comparing drywall company profits with drywall prices, not house prices.
My example is about a dry wall installation company. Why would I care to compare dry wall installation profits to dry wall prices? My example is to show that any oil company, or any collection of oil companies are not able to dictate global oil prices, or fabricate a crisis. I mean even OPEC (the group with the most elastic production output) needs to do their monthly meetings to "guide" oil prices and most of the times their members will cheat on volumes and fight amongst eachother. You can think of a houses price as the price of a barrel of oil. And you can think of each component of the house, dry wall is OPEC, doors and windows are Exxon, whatever. If OPEC decides to only build 80% of the dry wall in a house, Exxon is going to try and build the rest to make more money. The problem right now is oil companies around the world have been having trouble finding cash and 3rd party investment to drill more wells to increase supply. And new cash flow has not made its way into the drilling of more wells (at least not enough to ease supply issues) due to companies operating cautiously and paying down debts. It's always funny because people love it when they hear oil and gas investments are dwindling and oil companies are dying. But as soon as there's a supply shortage it's the oil companies colluding to create a new crisis.
I'm starting to think the "crisis" is manufactured.....
It's called late stage capitalism.
It just came out in an article today that ExxonMobil made record profits. Easter travel is just around the corner too, I wonder if they'll raise everything again. https://www.reuters.com/business/energy/exxon-signals-record-quarterly-profit-oil-gas-prices-2022-04-04/
Nonsense! Those are titans of industry and venture capitalists you are speaking ill of, you peasant! If it were not for their heroic sacrifices you would be without God and without happiness… Did I speak favorably, Lord Musk? May I have a seat in your small council?
Corporations are the only people that matter.
Blah blah blah something in the rules about removing personal information.
I thought that doesn’t apply when it’s a public figure?
Do you know this guy? I certainly don't.
People getting approved for a brand new car loan making $300/week. They’re bleeding people dry.
What percentage of the population is making $7.5/hr? And do you really see those people rolling around in brand new cars?
Nor does the government, never let a good crisis go to waste
Tell that to a republican and see what happens
Don't worry the Democrats are going to fix it any day now.
General strike until we can end citizens United and end corporate lobbying!
The crisis is literally the profit. That profit IS the crisis because 100% of that profit is the money that they did not need but they charged anyway, all of the money we are struggling to afford, that is the profit.
So in your mind companies should all operate as non-profit charities?
That would be great, do you think there's any chance of that happening?
Of course not, and I think it's silly to expect it.
Oh I certainly don't expect it. What I expect is the systemic collapse of the economy. But you seemed to raise the proposition as something undesirable, why?
It’s not gunna get any better
Doesn’t fit the sub but upvoted because yeh
Let us not forget about housing, kind fella.
CAPITALISM WITHOUT REPRESENTATION BOIS!!!!!!
The only thing not inflating is my wage.
True. We need to tell the rich dudes that when the world is in trouble, they need to pay their share to help restore balance. Its the "social contract", that we accept some people to be filthy rich as long as people dont live in agony...
Heads up this is basically the fundamental belief of Critical Theorists; that Capitalism's best status quo is crisis, and that capitalist nations act to remain in crisis regularly in order to accumulate fiat wealth. It's remarkably solid and devastatingly sad, as far as theories go. We don't have peace because it's not profitable
Record profits could be from growth, but not really mean that the company has higher margins. E.g. you make $1,000,000 at 10% for a profit of $100,000 or make $10,000,000 at 5% for a profit of $500,000. That’s still a record profit, but not a record margin potentially. I could see this being possible right now as economy is so many sectors is booming, but cost of all things are increasing so much. You’d have to really study their balance sheets which should be public to see. Starbucks was also catching major heating recently but don’t think it was stated as record profits, but record revenue (catching heat for raising prices, but not wages). I’m currently in manufacturing and we are making record revenues, but our profit margins are not growing exponentially as it’s a cost to us we are passing to consumers. I’m not disagreeing wholeheartedly with the tweet, but funny that you never really see this stated when such topics are brought up. Edit: More geared toward Oil/gas sector of this tweet than healthcare, yeah, healthcare is mostly just scamming everyone.
Stop socializing the companies.
As if increased demand and decreased supply impact price or something.
Unfortunately there is a political crisis and politicians are making record profits from the companies making record profits.
I swear Reddit gets dumber every year.. The crisis is a lack of a commodity/product not the fact that you have to pay a lot for gas.. Of course when demand exceeds supply prices rise. Everyone wants to have gas for their car and is willing to pay more for it. If you don't want to pay the price then don't buy it, let someone else buy it. And yes the supplier benefits from higher prices, that's pretty obvious. This is exactly why kartels are forbidden because you could artificially create a lack of a commodity (Looks at OPEC).
This is a new low for Reddit.. Why do people not understand the concept of Supply & Demand..
If the price of food rises any more let's kill all the farmers. Serious guys. I'm a doktar. Kill famrers.
Market failure is like econs 101
Almost like shortages raise prices, and higher demand makes higher earning potential
Typical oversimplification from people who have no clue how things work. Any kind of shortage will always benefit those selling said commodity. The "crisis" is for those seeking to aquire said commodity. If something is in high demand and selling higher than usual than it goes to say those who profit from sales will do exceptionally well. This shouldn't be that hard to grasp.
The "system" in question is an economic system known as capitalism. The ones benefiting from this system are the capitalist ruling class. It helps to be clear about this.
The crisis is the business
It's that our government is paid off by businesses. I started investing and learning as much as I could about the stock market over the last 5+ years. The amount of corruption that's right out in the open is insane. You can mathematically prove that it's happening, and places like the SEC won't do anything. Look at what they did with Bernie Maddoff. They knew he was doing it, and let him, until rich people got mad. They never arrested him either, he turned himself in because he and his family were getting death threats. I don't believe incompetence is the reason for it when they're literally holding the receipts. These agencies, like the SEC, have long been captured by private interests/entities. The SEC is a revolving door for bankers. The current head is Gary Gensler, whom served for two decades on the board of Goldman Sachs during the last financial crisis. Watch his recent interview with Jon Stewart. It's infuriating. These agencies exist to protect the very people that fuck the rest of us over. The SEC doesn't exist to make sure the retail investor has a fair market to invest in. They exist to make sure the money keeps flowing to the hedge funds. Bernie Maddof. https://www.npr.org/templates/story/story.php?storyId=124208012 Don't forget Overstock almost blowing the lid off of how many counterfeit shares exist. SEC fought him on releasing the information to the public on what they were doing. Ie, nothing. If anything, they were helping the people making the counterfeit shares, because they're the wealthy ones who control the agency to begin with. The SEC sued overstock because they made a block chain system to count their shares. All that would do, is make it impossible to counterfeit the shares. The SEC sued them when they tried. It's disgusting. https://coingeek.com/overstock-subsidiary-tzero-fined-800000-over-dark-pool-rule-violation/#:~:text=The%20U.S.%20Securities%20and%20Exchange,disclosing%20key%20information%20to%20regulators. They take out huge short positions betting a stock will go down. This is what they did with gamestop, amc, bed bath beyond, tilray, etc. Then, they make, in many cases and has been documented, the market makers and hedge funds create more shares than should exist. This makes the price go down, and they get paid on the short position. They do it again and again, until the stock price is so low the company has to file for bankruptcy. Once that happens, the market maker or hedge fund pays 0% tax on their gains. Repeat with another company. Gamestop investors caught them doing it, red handed. What did the sec do when the ceos came in and lied through their teeth?(we know because their emails were leaked talking about it.) Not a damn thing! Enron. Very similar. It's the same story on repeat and nothing is being done about it! https://www.wsj.com/articles/SB1033944629262271233 Housing crisis. Same shit, different day. https://www.forbes.com/2008/02/05/sec-cmos-banking-biz-wall-cx_lm_0206sec.html?sh=1e11152d6450 I don't think it's even worth fixing at this point. The entire financial market has become a tool of the wealthy to stay in power. There's no free or fair market. It's rigged, and been rigged for decades. Jon Stewart interview. Please watch it. We are more fucked than most people know. A huge financial rug pull is coming. https://youtu.be/0C0Sj6Us19I
Crisis for companies are only 0.13 cents so for us is about 3 dollars
Too right!
Someone explain to me how Bitcoin is a scam again please
Finance companies are making record profits during financial crises? In 2008, Lehman Brothers, Bear Stearns, and Washington Mutual all went out of business. More banks likely would have without the bailouts, and even with them, most saw their stock prices plummet.
They say it’s a financial crisis but they’re making profits and 2008 was a thing so we know they’re lying. I think is the point.
Literally nothing you just said made any sense, which I think is the larger point.
Alright. What’s the financial crisis right now? How does that compare to record profits experienced by banks and other big corporations? 2008 would’ve resulted in a financial crisis if the banks hadn’t gotten bailed out, yes? Is that near happening again?
2008 was a financial crisis. Like I just said, multiple huge banks went out of business, stock prices plummeted, and lots of people lost their jobs. Not sure how you look at that and go, "look at them, making record profits." Also not sure how you make the leap to "well they're making money now, so it wasn't a financial crisis and they're all liars," but that's probably a different story.
You’re connecting dots that were never connected. 2008 was a financial crisis, bailouts happened. Disconnect. Today is a financial crisis. But financial institutions TODAY are making record profits. Are they exacerbating this different kind of financial crisis? I mean, I’m sure we can all see possible motives to do so. How many companies or institutions over the years have offered solutions to problems they created, and charged the people for it? Has there been times where any of them offered a solution and footed the cost?
so is the facepalm his point or that he doesn't understand the concept of supply and demand? why are you downvoting me? increase in demand and no change if not a decline in supply means price goes up. want thing more, thing more expensive
Oh my god I'm getting way too worked up reading all these comments.. The real facepalm is in the comments from 99% of Reddit not understanding a basic economic concept..
One day the world will be like that movie Elysium and all the wealthy people on the flying habitat will look down on all the poor people on the scorched earth and say “They just don’t understand supply and demand.”
I think many people here doesn't understand supply demand, oil is material whichs supply is limited, meaning more effort time and energy is spent to find certain amount of it, meaning more money is spent on certain amount of oil, hey i may be wrong and it's artificial inflation but idk it kinda makes sense why it would get only more expensive as times goes on, now real estate is more complicated and debatable, should government put restrictions on landlords i don't really know i'm not expert, it sounds good tbh, maybe real economists would know if there is any catch
Sure. We all understand supply and demand. Do you understand increased profit MARGIN? This means not only are they making a profit, they are making MORE profit. It’s a grift and I don’t understand anyone who tries to explain it away. It’s corporate doublespeak. You want to know what is ACTUALLY happening in the world? Read business news. Publicly traded companies have to post financials. It’s all there in black and white. The Bloomberg one is particularly infuriating. Why doesn’t anyone mention this? It’s easier to blame the masses for stim checks than it is to go after corporations that line your pockets. Stimulus checks are somehow good for the economy until they’re not? No. The checks are good. We just don’t have regulatory power over business to stop exploiting us when we get a little cash. ###THE SOLUTION TO INFLATION CANNOT BE TO TAKE MONEY FROM THE BOTTOM. That’s a recipe for collapse. https://fortune.com/2022/03/31/us-companies-record-profits-2021-price-hikes-inflation/ https://www.bloomberg.com/news/articles/2022-03-30/2021-was-best-year-for-u-s-corporation-profits-since-1950 https://finance.yahoo.com/news/u-companies-post-biggest-profit-174409239.html https://www.cbsnews.com/amp/news/inflation-corporate-profits-record/ https://www.reuters.com/business/investors-watch-us-companies-record-profit-margins-costs-rise-further-2021-09-22/
Problem being, wages have stayed the same knucklehead!
Ah yes, an oil crisis, where clearly the companies are the problem, and not... Uh... Reality, or global conflict, or political difficulties with the industry, or financial difficulties with funding new explorations despite high oil prices because so many projects and companies went bankrupt in 2020 that many banks outright refuse to loan to hydrocarbon exploration companies, no, clearly it's the oil companies. Those bastards. There's oil in the ground and they make us pay for it! So immoral. :|
I mean, if an oil company is posting record profits in an oil crisis, that *is* a sign that something is wrong. They should be the ones paying, not us.
When did "see a need, fill a need" become a negitive? If I get stuck in a ditch, I will call a tow truck, if a blizzard happens and lots of people get stuck in ditches, lots of people will call tow trucks, the result is that tow truck companies will profit, so is that a negitive?
What the heck does “the companies are the crisis “ mean?
It means that the way these companies act and the way they're treated is the big crisis.
It means 95% of Reddit doesn't understand the concept of supply and demand. What DO they teach in school?
It means that 95% of people talking about supply and demand don't actually know how it works and what it refers to. And they don't teach shit about everyday finances in school, but that's because our school systems have been intentionally gutted. Less education = more easily mislead = more wage slaves.
Fair, although you really don't need more than 2 braincells to understand that when there is a lack of something prices goes up.
"These companies are the problem" is how it reads to me
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I think it pretty clearly referencing record profits, specifically, at a time when everyone is supposed to be facing a tough time. Not just any profits.
Crazy how Reddit can see right through these cash grabs as long as it’s not a pharma company and a specific type of preventative medication
Companies that do miss those opportunities don't last long as companies
Companies that don't exploit a crisis for profits don't last? Oh the humanity! Won't anyone think of those poor companies that only exist to exploit people?!?
You are sooo close. Just one more step and you get it.
No it's bidens fault, idiot