renok_archnmy t1_j6kt7l1 wrote

Not sure they’re planning anything. They want chicken sandwich, chicken sandwich is $14, they whip out that visa and charge it because bank account balance is $10.

6-12 months later they’ve maxxed out the credit card, can’t afford chicken sandwiches anymore and can’t afford the payments. Now they’re fucked.

It’s rebalanced in bankruptcy court, collections departments, insurance carried by the banks, debt settlements, you name it. They could’ve eaten beans and rice all year and not been in the spot. Instead they traded future credit worthiness for a chicken sandwich.

It’s literally that simple. Banks insure against this kind of loss and sell off bad loans all the time. Those get utilized for various things to avoid taxes or whatever over time. Interest rates climb. Taxes climb. That’s where it gets balanced back out.

I wouldn’t sweat it too much. Just Americans spending irresponsibly driven by consumerist lifestyles.


renok_archnmy t1_j6km3k8 wrote

This does happen. But often the cost to produce a luxury good is not far off from a standard one. Eventually demand drives up register price of regular products too. It’s like in the 90s Airwalks were the hot shit for a minute and vans were practically knockoff. Tables can turn. My dad bought a brand spanking new bare bones f150 in the 90s for $9000. Now pickup trucks are minimum $40k and have all sorts of amenities people back then didn’t even want in a work vehicle. Coupes were once the sport cars for people who didn’t need a full fledged sports car (or couldn’t afford one). Now people are buying high horsepower sedans and treating them like sports coupes.


renok_archnmy t1_j6kl8am wrote

Just sell it down until it settles somewhere with efficient collections divisions or easy to claim insurance.

We had to offload and cut off a lot of high risk debts we were buying because our insurance was harder to tap than previous projected. The margin was getting eaten up on operations expenses making the claims as they defaulted. Essentially, we stood to profit even in default except that the hourly wage of the staff processing the default, the lag time from default to paperwork, and the cost file the claims made it less profitable than other options.


renok_archnmy t1_j6k0wi3 wrote

When I was 16 you could buy a hamburger at McDonald’s for $0.89 on Tuesdays.

Not 100% following your reply, but prices rise because people pay them. They can pay them because they can put them on credit. Right now there is a tinge of hope this shot passes and their incomes might increase and stock markets return to COVID valuations. They won’t, there’ll be defaults, prices of goods will remain high, more people will become poor, rich people will become more rich. Same as happens the last few times this happened.

If you don’t like spending whatever McDonald’s charges for a hamburger today because you could buy one in high school for next a dollar, then don’t buy McDonald’s hamburgers.


renok_archnmy t1_j6jyols wrote

Underwriters carry insurance against loan default. They can write off the losses, make a claim, recoup funds, hold them in suspense type GLs as various losses for accounting trickery over the years.

Having a loan go bad for a bank isn’t a black and white affair of money lost forever. They get it back.

It happens all day every day.


renok_archnmy t1_j5z7xt2 wrote

I set my alarm to go off 5 minutes before markets opened and sold all my ARKK 1/27 37.5 C for +140%. Still down 57% whole portfolio over 365 days though.


renok_archnmy t1_j26kvh1 wrote

I’m surprised people got tired of receiving open and clearly worn underwear, mis packaged clothing, and having to return endless pairs of shoes or pants that didn’t fit in some Sisyphean online retail/Whole Foods drop off dance so much so that they’re opting to just buy stuff the regular way that allows try ons and seeing oneself in the mirror first… and also that whole part about not lining Bezos union busting, labor law flouting, forced employee pissing in bottles pockets.


renok_archnmy t1_j24w10g wrote

Tl;tl;dr version:

Two science mans in a race.

One has big lasers and shoot helium filled diamond grenades and make go boom more than shooting big lasers at flimsy paper.

Scientist man need more money and 30 years before can put in Tesla model 3.

Meanwhile, other scientist man likes farting between magnets to see if go boom. He lost the race but would also like more money too.


renok_archnmy t1_j20s7es wrote

Elon has no qualms about doing illegal trading stuff.

He can be quoted as saying, “I have no respect for the SEC.”

Do you think any branch of the US government has the competency to audit Twitter in such a way to uncover “algorithm tweaks” that promote his companies? My experience with auditors is that they barely know what cloud is let alone have to templates audit processes in place to investigate and know the exact changes that may have taken place to do such a thing.

Auditor: “I need to see your change log…”

Engineering manager: (prints commit history from GitHub to paper with diffs) “I started the process of extracting, it will cost $1,000,000 in paper and ink and take 17 months to complete. Alternatively I can requisition temporary credentials to GitHub from infosec by Friday. Then you can login and review these digitally.”

Auditor: “What’s GitHub? What’s a commit? How do I see the changes? What’s a diff? Who approved these? Why did they approve these? Eh, let me just choose 5 of these weird post things on this hubgitbucket thing at random and fill out this paper work so I can get out of this isolated freezing cold office and eat my shitty government salary bologna sandwich.”