Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
https://www.linkedin.com/pulse/world-has-gone-mad-system-broken-ray-dalio/?articleId=6597520880811724801#comments-6597520880811724801&trk=public_profile_article_view
His overall points are about exactly the same as my thoughts, the sustainability or unsustainable nature of the markets I am less sure than he is, as Japan showed you can keep this model running for quite a long time, so another decade of this is not out of the question.
When you look at the UBER business model, they lose money on every ride, but the belief is eventually they will put all taxis out of business, get self driving cars and be able to fire all the drivers and make loads of money. A business owned by a friend of mine paid 2.4 million for a building and equipment, borrowed all the money and got into the parts manufacturing business for large industrial companies, from scratch with no experience and 2 engineers - interest rate 3.5% over 10 years. He figured why not hurdle rate is so low and if the business fails all the bank gets is the building and equipment for which he has invested zero. All because he threatened to take all his business to a private hedge fund. It is truly amazing how much money for so little cost is available.
His overall points are about exactly the same as my thoughts, the sustainability or unsustainable nature of the markets I am less sure than he is, as Japan showed you can keep this model running for quite a long time, so another decade of this is not out of the question.
When you look at the UBER business model, they lose money on every ride, but the belief is eventually they will put all taxis out of business, get self driving cars and be able to fire all the drivers and make loads of money. A business owned by a friend of mine paid 2.4 million for a building and equipment, borrowed all the money and got into the parts manufacturing business for large industrial companies, from scratch with no experience and 2 engineers - interest rate 3.5% over 10 years. He figured why not hurdle rate is so low and if the business fails all the bank gets is the building and equipment for which he has invested zero. All because he threatened to take all his business to a private hedge fund. It is truly amazing how much money for so little cost is available.