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It is just depressing to read these comments. Most of these are arguing that it is not a good investment for the banks to invest in a high crime rate area. Well

It is just depressing to read these comments. Most of these are arguing that it is not a good investment for the banks to invest in a high crime rate area. Well if it is not the banks, who else? If it is nobody, are these areas condemned to be in this state forever? It just shows how broken the American society and psyche has become. I am sure even if the local, state or federal government try to make the same "bad" investment, the same people will come out demanding that tax dollars be spent elsewhere.

Apocryphon 6y ago
It’s also been said that zero-interest rates has led to an economy awash in dumb money looking for a place to invest: https://themargins.substack.com/p/zirp-explains-the-world https://themargins.substack.com/p/zirp-explains-the-world > Treasury investors shift to corporate debt. Public equity hedge funds shift to late-stage private equity. Late-stage private equity shifts to mid-stage, mid-stage to early stage. Seed rounds become bigger. Angel investors become a thing. Unicorns, unicorns, and more unicorns. Ashton Kutcher. > And that's how we end up where we are. In the past, if somewhat risky corporate debt got you 10%. It now gets you 7% (I'm making up numbers here) so you start taking meetings with late-stage growth companies. The Saudi SWF wants to modernize their economy, but they are also looking to achieve returns once found in public equities, so they have to get creative. Blackrock gets jealous of KKR who gets jealous of a16z who gets jealous of YC. There is just so much money looking to do so many new, riskier things. > And again, that's exactly how it's supposed to work. Cutting interest rates spurs demand and risk-taking. > When that much money finds its way into places not used to that much money, weird things happen. It's how we got to Community-Adjusted EBITDA and sleep economies. You don't create a ridesharing service, but a service that oddly loses money on every ride with a promise to figure out some future business [Tough, but fair -Can]. The distortions live at the valuation level, but also the communications and expectations level. Things just get weird. In which case, why opt for risky profit-less startups, and not attempts to revitalize local communities? It’s almost as if these cost-benefit analyses are skewed with built-in cultural biases and expectations.
ErikVandeWater 6y ago
The government should do its job of preventing crime first and foremost.

Apocryphon 6y ago

It’s also been said that zero-interest rates has led to an economy awash in dumb money looking for a place to invest: https://themargins.substack.com/p/zirp-explains-the-world https://themargins.substack.com/p/zirp-explains-the-world > Treasury investors shift to corporate debt. Public equity hedge funds shift to late-stage private equity. Late-stage private equity shifts to mid-stage, mid-stage to early stage. Seed rounds become bigger. Angel investors become a thing. Unicorns, unicorns, and more unicorns. Ashton Kutcher. > And that's how we end up where we are. In the past, if somewhat risky corporate debt got you 10%. It now gets you 7% (I'm making up numbers here) so you start taking meetings with late-stage growth companies. The Saudi SWF wants to modernize their economy, but they are also looking to achieve returns once found in public equities, so they have to get creative. Blackrock gets jealous of KKR who gets jealous of a16z who gets jealous of YC. There is just so much money looking to do so many new, riskier things. > And again, that's exactly how it's supposed to work. Cutting interest rates spurs demand and risk-taking. > When that much money finds its way into places not used to that much money, weird things happen. It's how we got to Community-Adjusted EBITDA and sleep economies. You don't create a ridesharing service, but a service that oddly loses money on every ride with a promise to figure out some future business [Tough, but fair -Can]. The distortions live at the valuation level, but also the communications and expectations level. Things just get weird. In which case, why opt for risky profit-less startups, and not attempts to revitalize local communities? It’s almost as if these cost-benefit analyses are skewed with built-in cultural biases and expectations.

ErikVandeWater 6y ago

The government should do its job of preventing crime first and foremost.