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This happens all the time all over the World, the more you learn about it the more you lose "faith" in whatever you're doing. But it's all psychology 101 reall

This happens all the time all over the World, the more you learn about it the more you lose "faith" in whatever you're doing. But it's all psychology 101 really, once you are viewed as "too big to fail", everyone contributes to your gigantic scam like a nervous peasant and they'd rather do it forever than take the hit now and let it burn.

arethuza 7y ago
Appropriately enough I saw this about RBS today: https://www.bbc.co.uk/news/uk-scotland-scotland-business-52478639 https://www.bbc.co.uk/news/uk-scotland-scotland-business-524... They got £46 billion from the UK government.
ssharp 7y ago
I might be missing the nuance here but how is WeWork "too big to fail"? While many were against the 2008-09 bailouts, you could at least see the logic of why the cost of the wake left behind from a company like General Motors radically reorganizing or dissolving would be worse than the cost of bailing them out. What happens if WeWork dissolves? Softbank and its investors lose a couple billion. They'll survive. WeWork owns some real estate and would leave behind office space that's already built out for short-term leasing. They'd be leaving behind something that can be mostly done turn-key by the next owner, hopefully on a smaller scale, with less ambitious growth expectations. They wouldn't be leaving behind an entire supply chain that extends well beyond themselves.
- xuki 7y ago
  GP is talking about SoftBank. With that kind of debt it's likely that SoftBank will need to get bailed out by the Japan government, i.e. Japanese tax payers.
  - lotsofpulp 7y ago
    That is ssharp’s point. Why do Japanese taxpayers need to bail out a Saudi gambling operation? Answer is they don’t “need” to.
    - xuki 7y ago
      Bailing out SoftBank is different from bailing out Vision fund, I'm sure Vision fund will burn on its own.
- godzillabrennus 7y ago
  WeWork has more liabilities with its long term leases than the real estate it owns. Adam set that company up for failure and Son funded that stupid vision. Appropriately it was with the SoftBank Vision Fund.
- _curious_ 7y ago
  "While many were against the 2008-09 bailouts, you could at least see the logic of why the cost of the wake left behind from a company like General Motors radically reorganizing or dissolving would be worse than the cost of bailing them out." It isn't logic grounded in some empirical truth. Bailouts - who gets them, as well as what would happen if not, are so subjective that there's no fair way to even go about it. What's worse is to perpetuate a culture, model, industry that doesn't deserve to continue to operate. And by deserve, it's not my opinion, rather logic of the market dictating things. As if that wasn't even, bailouts reward poor business practices - someone please prove otherwise!
- vikramkr 7y ago
  Softbank is the one that is too big to fail, and they are facing a lot more than just writing down wework right now

arethuza 7y ago

Appropriately enough I saw this about RBS today: https://www.bbc.co.uk/news/uk-scotland-scotland-business-52478639 https://www.bbc.co.uk/news/uk-scotland-scotland-business-524... They got £46 billion from the UK government.

ssharp 7y ago

I might be missing the nuance here but how is WeWork "too big to fail"? While many were against the 2008-09 bailouts, you could at least see the logic of why the cost of the wake left behind from a company like General Motors radically reorganizing or dissolving would be worse than the cost of bailing them out. What happens if WeWork dissolves? Softbank and its investors lose a couple billion. They'll survive. WeWork owns some real estate and would leave behind office space that's already built out for short-term leasing. They'd be leaving behind something that can be mostly done turn-key by the next owner, hopefully on a smaller scale, with less ambitious growth expectations. They wouldn't be leaving behind an entire supply chain that extends well beyond themselves.

xuki 7y ago
GP is talking about SoftBank. With that kind of debt it's likely that SoftBank will need to get bailed out by the Japan government, i.e. Japanese tax payers.
- lotsofpulp 7y ago
  That is ssharp’s point. Why do Japanese taxpayers need to bail out a Saudi gambling operation? Answer is they don’t “need” to.
  - xuki 7y ago
    Bailing out SoftBank is different from bailing out Vision fund, I'm sure Vision fund will burn on its own.
godzillabrennus 7y ago
WeWork has more liabilities with its long term leases than the real estate it owns. Adam set that company up for failure and Son funded that stupid vision. Appropriately it was with the SoftBank Vision Fund.
_curious_ 7y ago
"While many were against the 2008-09 bailouts, you could at least see the logic of why the cost of the wake left behind from a company like General Motors radically reorganizing or dissolving would be worse than the cost of bailing them out." It isn't logic grounded in some empirical truth. Bailouts - who gets them, as well as what would happen if not, are so subjective that there's no fair way to even go about it. What's worse is to perpetuate a culture, model, industry that doesn't deserve to continue to operate. And by deserve, it's not my opinion, rather logic of the market dictating things. As if that wasn't even, bailouts reward poor business practices - someone please prove otherwise!
vikramkr 7y ago
Softbank is the one that is too big to fail, and they are facing a lot more than just writing down wework right now