3 ms·

So its not the hype anymore?

by cekanoni 2y ago

TrainedMonkey 2y ago
Softbank historically had been late to buy into the hype, but man do they buy big.
- drtgh 2y ago
  I hope the Japanese government demands seismic isolation for Softbank, otherwise it will be the Japanese citizens who have to foot the bill when this hype hits the ground and shakes hard the Japanese economy :/ Softbank should not be allowed to invest more than ARM Holdings sold at a loss.
  - robertlagrant 2y ago
    Why would Japanese citizens be hit? Is Softbank a publicly backed fund?
    - drtgh 2y ago
      Softbank doesn't have enough cash reserves for such a huge inversion. There are no details of how will they do, but one can guess that loans will be taken from Japanese banks and companies around the country, which -depending on how ambitious they are- will be scrambling to stay in business when the debt isn't repaid on time, a highly contagious chain reaction will arise, what will invite the government to use public money, even turning on the printer (on such cases citizens lose). Softbank alone has more than 65k employees. If the Softbank's inversion is limited to their available assets, or the exposition of each lending is limited to a portion of their real reserves, I think such event will not happen (more than burned money by a bad inversion). I think it would be quite similar to what has already happened on a global scale with the public money of each country in 2008 (due to the banking pyramid scam), or since 2011 with public loans to TEPCO, an event that could have been prevented if the central plant had been built were originally planned.
- steveoscaro 2y ago
  At least this time the CEO of their chosen company isn’t a yuppie cult leader wannabe.
- rsynnott 2y ago
  I mean, to the extent that Softbank's grand entrance could almost be used as the signpost to the bursting of bubbles. If I was an AI enthusiast, Softbank showing up would make me nervous.
mrbungie 2y ago
Softbank is not exactly a green flag when using their involvent as a signal of "low hypeness". I still remember WeWork.

So its not the hype anymore?

TrainedMonkey 2y ago

Softbank historically had been late to buy into the hype, but man do they buy big.

drtgh 2y ago
I hope the Japanese government demands seismic isolation for Softbank, otherwise it will be the Japanese citizens who have to foot the bill when this hype hits the ground and shakes hard the Japanese economy :/ Softbank should not be allowed to invest more than ARM Holdings sold at a loss.
- robertlagrant 2y ago
  Why would Japanese citizens be hit? Is Softbank a publicly backed fund?
  - drtgh 2y ago
    Softbank doesn't have enough cash reserves for such a huge inversion. There are no details of how will they do, but one can guess that loans will be taken from Japanese banks and companies around the country, which -depending on how ambitious they are- will be scrambling to stay in business when the debt isn't repaid on time, a highly contagious chain reaction will arise, what will invite the government to use public money, even turning on the printer (on such cases citizens lose). Softbank alone has more than 65k employees. If the Softbank's inversion is limited to their available assets, or the exposition of each lending is limited to a portion of their real reserves, I think such event will not happen (more than burned money by a bad inversion). I think it would be quite similar to what has already happened on a global scale with the public money of each country in 2008 (due to the banking pyramid scam), or since 2011 with public loans to TEPCO, an event that could have been prevented if the central plant had been built were originally planned.
steveoscaro 2y ago
At least this time the CEO of their chosen company isn’t a yuppie cult leader wannabe.
rsynnott 2y ago
I mean, to the extent that Softbank's grand entrance could almost be used as the signpost to the bursting of bubbles. If I was an AI enthusiast, Softbank showing up would make me nervous.

mrbungie 2y ago

Softbank is not exactly a green flag when using their involvent as a signal of "low hypeness". I still remember WeWork.