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>this is a symptom of the short-termism in equity markets that we get from abstracting ownership away from involvement. Except this is explicitly talking about
by itsoktocry 4y ago
>this is a symptom of the short-termism in equity markets that we get from abstracting ownership away from involvement.
Except this is explicitly talking about private markets. You know, those places that VCs and people like Elon Musk claim companies need to be to avoid "short-termism" of public markets and have ownership be rewarded.
The reality is these money men want to be private so they never have to mark-to-market. The public markets enforce that.
- clairity 4y agoyes, you're right. i misread the title and didn't originally read the article because it was behind a paywall, but just saw the archive link and read through it now. i think a similar dynamic happens in PE though, which is a private market, but a very large one, so not like the illiquid, opaque private markets we'd otherwise imagine. PE firms try to inflate valuations and get out while leaving others holding the bag (i.e., take the inflated risks and therefore take the eventual losses).