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Another asnswer: Because the people making the business decisions in these companies is the only thing they can do. When you have no vision as a company or no

by v4dok 7y ago

Another asnswer: Because the people making the business decisions in these companies is the only thing they can do. When you have no vision as a company or no visionary in your team, you get served by the countless consultants and ex-bankers who went to big-tech because of its the new Wallstreet. Of course, they have no idea what Tech does and is and of course no clue how to provide something of significant value. Instead, they steer the companies into direction where is familiar to them through their finance classes and/or their Private Equity, Venture Capital backgrounds. The fact that everyone wants to become a bank is not engagement, is not profits. Its a sign of a failing economy where capital decided that the best thing it can do is to invest in itself.

FailMore 7y ago
I think this is true. Since mobile every company has been praying for and betting on the next paradigm (voice, watch, glasses, VR, AR) but nothing has moved the needle in a major way. I think there is a lot of visionless drift right now, and banking is another most likely fruitless direction tech will drift into. Lots of media hype, mediocre traction (as with all the alternative paradigms listed above). Hats off to FB though, I think their perspective is the only innovative one out there.
TrackerFF 7y ago
Also: Debt is cheap these days, and regular people are in desperate need of cash - so it's a sellers market. Where I'm from (Norway), we've seen an explosion in these offshoot banks - i.e consumer loans / credit card providers. Airlines, big box electronic stores, etc. Ans surprise, surprise, many of these banks are raking in cash. And triple surprise, defaults in credit cards / consumer loans have also exploded. It should also be mentioned we have some of the most creditor-friendly laws / system in the world. It's almost impossible to get rid of debt, because there's an automated pipeline from banks to debt-collectors to government instances that will do the final debt collection via wage and welfare garnishments. These banks will foreclose your house, repo your car, and whatnot on defaulted / outstanding debt as little as equivalent to $10 (but of course, by the time many have noticed this, that measly $10 has grown in to thousands, through a battery of fees and compounding interest of said fees). I've been calling it for some time now: Our next global recession will come from consumer debt and credit cards. Banks are handing out credit to anyone with a pulse
- buboard 7y ago
  norway seems to be an outlier. household debt seems to have tapered off after the crisis https://www.quora.com/In-Norway-what-caused-224-of-household-income-to-be-debt https://www.quora.com/In-Norway-what-caused-224-of-household...
- Keverw 7y ago
  Yeah the whole credit thing is nice, but I wonder how many people are pay check to paycheck with less than 1K in savings driving brand new cars, living in a large house with a brand new iPhone and flat screen. Then when people are closed to paying off their mortgage, they refinance or take out a second mortgage. However there is someone who says if you need a new car, only pay cash so if you only have 500 bucks, get one off of Craigslist to get to point A to point B but in a way I feel like that's bad advice as wouldn't be reliable and you'd end up spending a bunch on repairs. So I feel like credit is good, but in a way people use it for too much instead of saving. My favorite idea is to just use credit cards no differently than a debit card, don't spend anything you know you won't be able to pay off. Then instead of paying banks, they pay you! Sounds like cashback is worthless with interest. So I guess a different mindset than the majority of people, but the credit card companies are probably hoping you slip up at some point. Then as for credit in business, I feel like the best way to use credit is to scale up something that is already working out for you... Maybe you need more inventory because you are selling fast but still waiting on your supplies to pay you, so throwing in a bit of credit you know you can for sure pay back would help keep up with the demand. I know some people hate credit, but having a good score might help you when you get a job, auto insurance premiums, apartment but laws vary by states too in what companies can use your score for. For example I know California doesn't allow them to use it for auto insurance, and I think credit checks for job applicants is limited too but Ohio doesn't care really what companies use your credit score for. So if you are 18, get a credit card just to treat yourself to some McDonalds once a month, then pay it off fully when you get your statement you'd be better off credit wise than someone who didn't have any credit at all. A lot of stuff they don't teach in school, you can get a better financial education on YouTube.

by v4dok 7y ago

FailMore 7y ago

I think this is true. Since mobile every company has been praying for and betting on the next paradigm (voice, watch, glasses, VR, AR) but nothing has moved the needle in a major way. I think there is a lot of visionless drift right now, and banking is another most likely fruitless direction tech will drift into. Lots of media hype, mediocre traction (as with all the alternative paradigms listed above). Hats off to FB though, I think their perspective is the only innovative one out there.

TrackerFF 7y ago

Also: Debt is cheap these days, and regular people are in desperate need of cash - so it's a sellers market. Where I'm from (Norway), we've seen an explosion in these offshoot banks - i.e consumer loans / credit card providers. Airlines, big box electronic stores, etc. Ans surprise, surprise, many of these banks are raking in cash. And triple surprise, defaults in credit cards / consumer loans have also exploded. It should also be mentioned we have some of the most creditor-friendly laws / system in the world. It's almost impossible to get rid of debt, because there's an automated pipeline from banks to debt-collectors to government instances that will do the final debt collection via wage and welfare garnishments. These banks will foreclose your house, repo your car, and whatnot on defaulted / outstanding debt as little as equivalent to $10 (but of course, by the time many have noticed this, that measly $10 has grown in to thousands, through a battery of fees and compounding interest of said fees). I've been calling it for some time now: Our next global recession will come from consumer debt and credit cards. Banks are handing out credit to anyone with a pulse

buboard 7y ago
norway seems to be an outlier. household debt seems to have tapered off after the crisis https://www.quora.com/In-Norway-what-caused-224-of-household-income-to-be-debt https://www.quora.com/In-Norway-what-caused-224-of-household...
Keverw 7y ago
Yeah the whole credit thing is nice, but I wonder how many people are pay check to paycheck with less than 1K in savings driving brand new cars, living in a large house with a brand new iPhone and flat screen. Then when people are closed to paying off their mortgage, they refinance or take out a second mortgage. However there is someone who says if you need a new car, only pay cash so if you only have 500 bucks, get one off of Craigslist to get to point A to point B but in a way I feel like that's bad advice as wouldn't be reliable and you'd end up spending a bunch on repairs. So I feel like credit is good, but in a way people use it for too much instead of saving. My favorite idea is to just use credit cards no differently than a debit card, don't spend anything you know you won't be able to pay off. Then instead of paying banks, they pay you! Sounds like cashback is worthless with interest. So I guess a different mindset than the majority of people, but the credit card companies are probably hoping you slip up at some point. Then as for credit in business, I feel like the best way to use credit is to scale up something that is already working out for you... Maybe you need more inventory because you are selling fast but still waiting on your supplies to pay you, so throwing in a bit of credit you know you can for sure pay back would help keep up with the demand. I know some people hate credit, but having a good score might help you when you get a job, auto insurance premiums, apartment but laws vary by states too in what companies can use your score for. For example I know California doesn't allow them to use it for auto insurance, and I think credit checks for job applicants is limited too but Ohio doesn't care really what companies use your credit score for. So if you are 18, get a credit card just to treat yourself to some McDonalds once a month, then pay it off fully when you get your statement you'd be better off credit wise than someone who didn't have any credit at all. A lot of stuff they don't teach in school, you can get a better financial education on YouTube.