4 ms·
Yet another example of VC ending up subsidizing America. We could just cut out the middleperson and go to basic income paid for by VCs.
by FTA 9y ago
Yet another example of VC ending up subsidizing America. We could just cut out the middleperson and go to basic income paid for by VCs.
- raverbashing 9y agoSomebody needs to pay for the next Uber of Avocado Delivery
- glogla 9y agoI'm sure you actually meant Avocado Toast.
- pplante 9y agoNo the delivery company is an infrastructure play while the toast company is scaling the b2c interfaces.
- toomuchtodo 9y agoIts "Not Hotdog" all the way down.
- fny 9y agoAnd we could promise the VCs 100x returns in the afterlife.
- beambot 9y agoNow, as a thought exercise: who do you think subsidizes VCs? (I.e. who are the biggest LPs) For people who don't want to look it up... Some of the biggest are pension funds! It's not just high net worth individuals or companies, it's also mom & pop retirement funds. https://www.quora.com/Who-are-the-biggest-investors-limited-partners-in-US-venture-capital https://www.quora.com/Who-are-the-biggest-investors-limited-...
- avs733 9y agoit is a big circle of value extraction by as many members of the capitalist class as possible...
- aphextron 9y ago>Now, as a thought exercise: who do you think subsidizes VCs? (I.e. who are the biggest LPs) The Fed, with their policy of Quantitative Easing over the past 5 years.
- dragonwriter 9y agoThe Fed QE policy was over about 5 years (late 2009 to late 2014), but not “the past 5 years”.
- thephyber 9y agoWhich doesn't disprove the gp. The Fed still has $4.5 trillion in assets on their books, when they had < $1 trillion pre-QE1. The Fed supported $3.5 trillion in risky assets long-term. The Fed has paid US banks to hold onto currency reserves that were injected into them, effectively subsidizing more risky investments throughout the economy. This includes equity growth, equity distributions, low bond yields, kept the capitalization rate (ignoring Fed injections into banks) low, etc. Without keeping QE on the books, these other current market investments wouldn't have been possible. QE has allowed risky debt to continue to float around the entire financial system without market forces quickly drowning the riskiest. Effectively the Fed is subsidizing the risk and the average person will pay when inflation finally picks up. Just because we still don't fully understand the new "laws of finance" while we are in this QE bubble doesn't mean the old laws of finance won't still apply when QE dissolves.
- deleted 9y ago[deleted]
- riku_iki 9y agoBut Fed is not just giving money for free. VCs will need to return them eventually.
- ethbro 9y agoExcept in this instance, the beneficiaries are those unable to acquire a car loan. So a very different demographic from the usual crowd benefitting from VC largesse. I don't think the irony should be lost.