5 ms·

The investor class is desperate for a recession and it's just not happening so they keep laying off people until they can make it happen.

flappyeagle 3y ago
This is not how recessions work.
- fnordpiglet 3y ago
  Of course not. They’re caused by the fed.
  - red-iron-pine 3y ago
    Recessions and collapses happened long before the Fed ever existed, e.g. Tulips
    - bichiliad 3y ago
      I think the Tulip Mania, if that's what you're referring to, was a speculation bubble, whereas a recession is widespread by definition.
- MrSqueezles 3y ago
  Emotional investors moving hundreds of billions of dollars create self-fulfilling prophecies. It absolutely is how recessions work. "I'm so pissy because the US Fed isn't giving away free money anymore. I'm moving to cash and will shower money on any company that does layoffs." Yeah, it works.
  - flavius29663 3y ago
    US recessions and bear markets happen most of the time because of mass psychosis, not because of some underlying cause. There can be a trigger, yes, but it's generally not that big of a deal. The government also plays a role in triggering these recessions, so that they can pop the bubbles before it's too late. Yes, there can be recessions causes by world wars, worldwide droughts, pandemics and other cataclysmic events, but usually it's not the case for US.
    - diceduckmonk 3y ago
      Enough people losing their jobs, cutting spending habits, will create that mass psychosis. Tech is a small part of the economy, but cities like Seattle that have built restaurants and services catering to the tech crowd will see further fallout. There was this idea that Seattle would be this next big metropolitan area, but tech implants have found it’s not for them after a few years
  - yowlingcat 3y ago
    The idea that emotional investors moving large amounts of money can single-handedly cause recessions is naive, even if it is comforting. The world has been using ZIRP for a long time. This policy has led to overinflated stock prices and a significant number of worthless loans held by regional banks, now collapsing at a rate similar to the 2008 crisis. When equity assets lose value, companies buoyed by those previous values have to reduce their spending because they would not be able to raise enough money by selling those assets, and they'd otherwise end up underwater or going bankrupt.
lennixm 3y ago
You win. Worst take of the day.
r053bud 3y ago
They are terrified that workers might finally be getting fed up with the status quo and demanding higher salaries and better work/life balance, so they have to collude to conduct layoffs and feed the surplus pool of labor to hopefully force down salaries. This is capitalism 101 baby.

flappyeagle 3y ago

This is not how recessions work.

fnordpiglet 3y ago
Of course not. They’re caused by the fed.
- red-iron-pine 3y ago
  Recessions and collapses happened long before the Fed ever existed, e.g. Tulips
  - bichiliad 3y ago
    I think the Tulip Mania, if that's what you're referring to, was a speculation bubble, whereas a recession is widespread by definition.
MrSqueezles 3y ago
Emotional investors moving hundreds of billions of dollars create self-fulfilling prophecies. It absolutely is how recessions work. "I'm so pissy because the US Fed isn't giving away free money anymore. I'm moving to cash and will shower money on any company that does layoffs." Yeah, it works.
- flavius29663 3y ago
  US recessions and bear markets happen most of the time because of mass psychosis, not because of some underlying cause. There can be a trigger, yes, but it's generally not that big of a deal. The government also plays a role in triggering these recessions, so that they can pop the bubbles before it's too late. Yes, there can be recessions causes by world wars, worldwide droughts, pandemics and other cataclysmic events, but usually it's not the case for US.
  - diceduckmonk 3y ago
    Enough people losing their jobs, cutting spending habits, will create that mass psychosis. Tech is a small part of the economy, but cities like Seattle that have built restaurants and services catering to the tech crowd will see further fallout. There was this idea that Seattle would be this next big metropolitan area, but tech implants have found it’s not for them after a few years
- yowlingcat 3y ago
  The idea that emotional investors moving large amounts of money can single-handedly cause recessions is naive, even if it is comforting. The world has been using ZIRP for a long time. This policy has led to overinflated stock prices and a significant number of worthless loans held by regional banks, now collapsing at a rate similar to the 2008 crisis. When equity assets lose value, companies buoyed by those previous values have to reduce their spending because they would not be able to raise enough money by selling those assets, and they'd otherwise end up underwater or going bankrupt.

lennixm 3y ago

You win. Worst take of the day.

r053bud 3y ago

They are terrified that workers might finally be getting fed up with the status quo and demanding higher salaries and better work/life balance, so they have to collude to conduct layoffs and feed the surplus pool of labor to hopefully force down salaries. This is capitalism 101 baby.