4 ms·

I am curious to see how this plays out with the coming recession (hiring freezes instituted already). I suspect that #3 segment will prove to be ephemeral - a r

by hawk_ 4y ago

I am curious to see how this plays out with the coming recession (hiring freezes instituted already). I suspect that #3 segment will prove to be ephemeral - a result of fed's QE unlimited regime.

aenis 4y ago
Booking.com, quoted in the article, is a prime example of what happens when those companies are squeezed. They let a lot of people go in 2020, haphazardly, then they scrambled to re-hire as wheels started falling off their platform. I turned them down despite them offering a good salary bump.
sealeck 4y ago
If you look at Google, Apple, Amazon, etc's balance sheets they're quite solid, not really at this point propped up by monetary policy any more.
- hawk_ 4y ago
  Fed's balance sheet has barely started contracting. This contraction cycle has a while to play out.
  - moneywoes 4y ago
    Is there a place we can see a east to understand chart about this?
    - hawk_ 4y ago
      Here it is straight from the horse's mouth https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren... Look at the Total... chart.
- UkrainianJew 4y ago
  It's not that easy. Lots of Amazon's profits come from countless unprofitable startups blowing VC money on AWS. Google is swimming in money because numerous companies have generous ad budgets. Apple relies on people exchanging their smartphone every year or so because why not. You cannot expect these things to go unchanged if the Fed stops throwing money around like it's used to. And if it doesn't, a bag of rice will soon cost $1000 because we have an shortage of farm workers and an oversupply of wellness bloggers, influencers and administrators.
  - DoingIsLearning 4y ago
    I agree with your argument on risk exposure but I think you underestimate how much _cash_ those three companies actually hold. They really stockpilled these past five or so years.

by hawk_ 4y ago

I am curious to see how this plays out with the coming recession (hiring freezes instituted already). I suspect that #3 segment will prove to be ephemeral - a result of fed's QE unlimited regime.

aenis 4y ago

Booking.com, quoted in the article, is a prime example of what happens when those companies are squeezed. They let a lot of people go in 2020, haphazardly, then they scrambled to re-hire as wheels started falling off their platform. I turned them down despite them offering a good salary bump.

sealeck 4y ago

If you look at Google, Apple, Amazon, etc's balance sheets they're quite solid, not really at this point propped up by monetary policy any more.

hawk_ 4y ago
Fed's balance sheet has barely started contracting. This contraction cycle has a while to play out.
- moneywoes 4y ago
  Is there a place we can see a east to understand chart about this?
  - hawk_ 4y ago
    Here it is straight from the horse's mouth https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren... Look at the Total... chart.
UkrainianJew 4y ago
It's not that easy. Lots of Amazon's profits come from countless unprofitable startups blowing VC money on AWS. Google is swimming in money because numerous companies have generous ad budgets. Apple relies on people exchanging their smartphone every year or so because why not. You cannot expect these things to go unchanged if the Fed stops throwing money around like it's used to. And if it doesn't, a bag of rice will soon cost $1000 because we have an shortage of farm workers and an oversupply of wellness bloggers, influencers and administrators.
- DoingIsLearning 4y ago
  I agree with your argument on risk exposure but I think you underestimate how much _cash_ those three companies actually hold. They really stockpilled these past five or so years.