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Outlaw what? Prevent companies from selling goods and services to each other?
by dyauspitr 5mo ago
Outlaw what? Prevent companies from selling goods and services to each other?
- snypher 5mo agoI think SpaceX should be valued on rockets n space n stuff, not how many magical calculator dollars they bring in. Surely Google can "make compute go" for $1b/month. Nice way to avoid holding the bag, maybe?
- trollbridge 5mo agoThe market seems to value both rockets and magical calculators.
- dyauspitr 5mo agoI mean, we all understand that this is some sort of circular financial play, but at the end of the day Google is paying SpaceX $1 billion for compute. This is no different from AWS or Azure.
- mihaic 5mo agoYes, if it's done with an intent to defraud the general population, which could be the case here. Effects and intent really matter when deciding actions.
- spwa4 5mo agoExcept the regulators first outlawed what is generally considered to have caused the great depression (savings banks allowed to invest, which translates to very, very rich people being allowed to take massive risks with poor people's money) ... then re-legalized it. So not only are the regulators not going to allow things that cause another great depression, they're allowing the things that caused the first great depression too. They must want a rerun. (Because if you don't allow this you're effectively demanding the extremely rich make good investments to stay rich ... and not even France, otherwise pretty socialist, dares to go that far)
- whateveracct 5mo agoit's not about that. it's about how it gets reported in their financials.
- carefulfungi 5mo agoThe problem described isn't companies buying goods and services. It's buying from an entity they partially own and then profiting as that entity becomes more valuable because of the purchase.
- dyauspitr 5mo agoIt’s still very tenuous you can’t prevent companies that own 5% of other companies from buying services from the that company
- matthewdgreen 5mo agoWe can prevent anything we want. If there's a major AI crash analogous to the Depression, we'll probably institute a lot of new regulations.
- deleted 5mo ago[deleted]
- carefulfungi 5mo agoIf the parent comment is true, it seems the problematic aspect is the leverage created by the P/E ratio more than the percentage of ownership. What a weird situation.
- dyauspitr 5mo agoOh yeah, these are definitely circular financial games but you have to be wary about putting in insane regulations that will break growth.
- saalweachter 5mo agoMy preferred fix is "corporations can't buy stock, their own or others".