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The real world sees no other opportunities for outsized returns. Too much money chasing too little opportunity.

prasadjoglekar 1y ago
Yup! Public markets are at all time highs. Other hard assets are also at all time highs. This sort of speculative investment only makes sense when nothing else is attractive. And it's cash from asset managers. Its not 10Bn worth of compute time from Microsoft or Google.
- simianwords 1y ago
  Its a strange way to view things.. the investors found a place to invest money from which they can make profits and they did it. Much like any other investment. What do you think makes this more speculative than any other investment?
marcosdumay 1y ago
That's what wealth inequality does.
- triceratops 1y ago
  +100
- wagwang 1y ago
  No that's what low interest rates does
  - JimmyBuckets 1y ago
    This comment seems like a rebuttal which is confusing to me because they are deeply related.
    - wagwang 1y ago
      Maybe, but interest rates among other bad banking practices is how we got here in the first place.
  - Printerisreal 1y ago
    No that's what PRINTING fiat money does. Low or high interest rates, they print $trillions
    - arcticbull 1y ago
      Who's "they"?
      - Printerisreal 1y ago
        Governments, CBs and investment banks. "They" do it and work together to print more.
        arcticbull 1y ago
        In a centrally banked economy, retail and commercial banks create money when you take out loans. The government doesn't create money except during QE which only happened twice in the US, 2009-2014 and 2020-2021. That's why I was curious what you meant by "they." The Fed has been actively destroying money for the last 4 years.
        Printerisreal 1y ago
        Now explain why government raise the debt limit? other than allowing printing to get fiat money?
        arcticbull 1y ago
        Ah yeah, that's a common misconception. Deficit spending doesn't create new money. Deficit spending borrows existing money from the population and institutions in exchange for a promise of future government revenues. The Fed does not participate in treasury primary auctions and does not monetize the debt as a means of funding government operations. If you printed new money to pay for the government, you wouldn't have a debt. That's double-counting. Not to mention the debt is twice as large as the entire money supply so what you're suggesting isn't even physically possible. It would be inflationary to simply print new money to finance spending, which is exactly why it's not done. [edit] Also the debt limit is a stupid concept that's likely unconstitutional. Congress authorizes spending, meaningful debate over paying for it by adjusting the debt limit likely falls afoul of the 14th amendment's public debt clause. But yeah I mean the debt limit goes up because the government spends more money than it takes in, so it needs to borrow more each year.

Yup! Public markets are at all time highs. Other hard assets are also at all time highs. This sort of speculative investment only makes sense when nothing else is attractive. And it's cash from asset managers. Its not 10Bn worth of compute time from Microsoft or Google.

simianwords 1y ago
Its a strange way to view things.. the investors found a place to invest money from which they can make profits and they did it. Much like any other investment. What do you think makes this more speculative than any other investment?

marcosdumay 1y ago

That's what wealth inequality does.

triceratops 1y ago
+100
wagwang 1y ago
No that's what low interest rates does
- JimmyBuckets 1y ago
  This comment seems like a rebuttal which is confusing to me because they are deeply related.
  - wagwang 1y ago
    Maybe, but interest rates among other bad banking practices is how we got here in the first place.
- Printerisreal 1y ago
  No that's what PRINTING fiat money does. Low or high interest rates, they print $trillions
  - arcticbull 1y ago
    Who's "they"?
    - Printerisreal 1y ago
      Governments, CBs and investment banks. "They" do it and work together to print more.
      - arcticbull 1y ago
        In a centrally banked economy, retail and commercial banks create money when you take out loans. The government doesn't create money except during QE which only happened twice in the US, 2009-2014 and 2020-2021. That's why I was curious what you meant by "they." The Fed has been actively destroying money for the last 4 years.
        Printerisreal 1y ago
        Now explain why government raise the debt limit? other than allowing printing to get fiat money?
        arcticbull 1y ago
        Ah yeah, that's a common misconception. Deficit spending doesn't create new money. Deficit spending borrows existing money from the population and institutions in exchange for a promise of future government revenues. The Fed does not participate in treasury primary auctions and does not monetize the debt as a means of funding government operations. If you printed new money to pay for the government, you wouldn't have a debt. That's double-counting. Not to mention the debt is twice as large as the entire money supply so what you're suggesting isn't even physically possible. It would be inflationary to simply print new money to finance spending, which is exactly why it's not done. [edit] Also the debt limit is a stupid concept that's likely unconstitutional. Congress authorizes spending, meaningful debate over paying for it by adjusting the debt limit likely falls afoul of the 14th amendment's public debt clause. But yeah I mean the debt limit goes up because the government spends more money than it takes in, so it needs to borrow more each year.