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Private equity markets killed radio. Radio stations were simply worth more to a large broadcasting company than a small local station because large broadcasters

Private equity markets killed radio. Radio stations were simply worth more to a large broadcasting company than a small local station because large broadcasters could leverage their massive advertising network. We're going to eventually look back and wonder how much damage the rise of private equity and modern finance has done to so many things that were once of such high quality. Financial engineering is distorting the original intent of market forces and leaving more and more consumers with an inferior product.

api 7y ago
The phrase "financial pollution" recently came to mind in the context of foreign investors buying and sitting on real estate and driving up costs for local residents. I think the phrase may apply to a lot of things. Keynes seems to have been right about the problems of "saving beyond planned investment." It seems to create even more problems than he imagined. A little of it does end up finding interesting important ventures but most of it is big dumb money that chases bubbles or gets parked in socially destructive rent seeking operations. Money is made for some investors but the overall ROI for civilization is a net negative; making money by destroying wealth.
- jeremyboom8 7y ago
  > making money by destroying wealth. http://artbrock.com/blog/magical-power-objects-and-sociopaths http://artbrock.com/blog/magical-power-objects-and-sociopath...
- Spooky23 7y ago
  You are describing legalized money laundering designed to tie up money and keep it out of circulation. It will keep inflation away until it doesn’t, as some day the consequences of printing money will be felt. One of the most negative influences of civilization has been people hoarding wealth, and we’re reverting to an environment that empowers that.
  - RaptorJ 7y ago
    You'll only feel the consequences of printing money if productivity and population stop rising, and seeing as how the earth in infinitely large, I don't see that happening!
    - whenchamenia 7y ago
      Population is leveling off. Only developing nations are still growing in general. Your assumption, as those printing money, is equally flawed.
      - api 7y ago
        Money printing was a hack to deal with the economic money supply problems caused by the crazy population growth of the 19th and 20th centuries.
JudgeWapner 7y ago
Even before private equity, it was very difficult for indie musicians to get their songs played on the air, due to collusion with the recording industry. These days, running AM or FM radio is inefficient and a waste of power. It doesn't take kilowatts and microwave links to blanket an area with coverage. I think the failure is not coming up with a viable digital replacement that works on cell towers. I know that streaming works fine, but there's no centralized system, or parallel representation that's freely broadcast from cell towers. This would have been a prime opportunity for the FCC to force cell companies to provide a certain number of free broadcast channels (that work even without cell service) to serve the community. Just like how they force TV and radio stations to play community service shows on Sunday morning.
shams93 7y ago
Deregulation enabled Clear Channel to effectively monopolize terrestrial radio finance was the tool but without deregulation it would have been legally impossible.

api 7y ago

The phrase "financial pollution" recently came to mind in the context of foreign investors buying and sitting on real estate and driving up costs for local residents. I think the phrase may apply to a lot of things. Keynes seems to have been right about the problems of "saving beyond planned investment." It seems to create even more problems than he imagined. A little of it does end up finding interesting important ventures but most of it is big dumb money that chases bubbles or gets parked in socially destructive rent seeking operations. Money is made for some investors but the overall ROI for civilization is a net negative; making money by destroying wealth.

jeremyboom8 7y ago
> making money by destroying wealth. http://artbrock.com/blog/magical-power-objects-and-sociopaths http://artbrock.com/blog/magical-power-objects-and-sociopath...
Spooky23 7y ago
You are describing legalized money laundering designed to tie up money and keep it out of circulation. It will keep inflation away until it doesn’t, as some day the consequences of printing money will be felt. One of the most negative influences of civilization has been people hoarding wealth, and we’re reverting to an environment that empowers that.
- RaptorJ 7y ago
  You'll only feel the consequences of printing money if productivity and population stop rising, and seeing as how the earth in infinitely large, I don't see that happening!
  - whenchamenia 7y ago
    Population is leveling off. Only developing nations are still growing in general. Your assumption, as those printing money, is equally flawed.
    - api 7y ago
      Money printing was a hack to deal with the economic money supply problems caused by the crazy population growth of the 19th and 20th centuries.

JudgeWapner 7y ago

Even before private equity, it was very difficult for indie musicians to get their songs played on the air, due to collusion with the recording industry. These days, running AM or FM radio is inefficient and a waste of power. It doesn't take kilowatts and microwave links to blanket an area with coverage. I think the failure is not coming up with a viable digital replacement that works on cell towers. I know that streaming works fine, but there's no centralized system, or parallel representation that's freely broadcast from cell towers. This would have been a prime opportunity for the FCC to force cell companies to provide a certain number of free broadcast channels (that work even without cell service) to serve the community. Just like how they force TV and radio stations to play community service shows on Sunday morning.

shams93 7y ago

Deregulation enabled Clear Channel to effectively monopolize terrestrial radio finance was the tool but without deregulation it would have been legally impossible.