2022 Financial Crisis: Inflation surging, Stock Market crumbling

Discussion in 'BS Forum' started by SOXXX2, May 10, 2022.

  1. Acad23

    Acad23 Well-Known Member

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    It's the price of Tesla stock that matters...imo.
     
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  2. Br4d

    Br4d 2018 Weeb Ewbank Award

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    Elon Musk has major momentum at this point and very little of it is because his companies are actually succeeding at doing the things they are setup to do. Most of it is because every company he touches has an extraordinary stock run up. By succeeding I mean making major profits that put a real dent in the startup costs over the last decade.

    At some point people are going to have to assess whether or not the stock valuations match performance or growth potential and at that point we may see an also extraordinary plummet in shareholder value.

    He keeps saying his companies are overvalued because they are. He also keeps cashing the run ups out over time and he is not going to get caught when the run stops. That will be the sovereign wealth funds and the major institutional investors. They'll be holding the bag when the hole opens up and value starts flowing out in a major way.

    We're due for an extraordinary correction verging on a black swan event. When that happens the really high flyers are going to fall the farthest.
     
  3. Acad23

    Acad23 Well-Known Member

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    https://bls.gov/news.release/pdf/cpi.pdf
     
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  4. barfolomew

    barfolomew Well-Known Member

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    Corporate fat cats and industrial cartels are killing this country. Price controls may be needed
     
  5. Ralebird

    Ralebird Well-Known Member

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    Well, he has certainly stirred the pot at Twitter but the close today was exactly the same as it was April 14th, the day it was announced he was buying the company. It did go up for a few days, as high as closing at $51.70 on April 25th but the price has not approached his buyout figure of $54.20 even after he stated he had enough backing to completely fund the transaction. That is, by no means, "an extraordinary stock runup." What's wrong with this picture?
     
  6. HomeoftheJets

    HomeoftheJets Well-Known Member

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    Corporate greed isn't causing inflation, and price controls are a terrible idea. Would lead to shortages in goods that are price controlled and worse inflation in those that aren't because with the government having lost the plot, inflation expectations would increase.
     
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  7. Br4d

    Br4d 2018 Weeb Ewbank Award

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    He doesn't control Twitter yet. If the purchase goes through Twitter stock will rise significantly in the aftermath and then just keep rising after that. It's the pattern at all companies that Musk controls that are public.

    My theory is that people see Elon Musk as a visionary and so they give him tremendous leeway in terms of current valuations vs future projections. It's fair to say that his role in controlling companies seen as the future also insulates him somewhat from the fact that the present performance does not back up the valuation rises that occur.

    This has two potential consequences. First if Elon Musk were to die in an accident or some similar sudden manner there would likely be an almost immediate correction in every company he controls. The second is that futurists are valued as long as the present is stable. If things suddenly turn into a major bear market the odds are good that his interests will decline more sharply than the average company precisely because their valuations are so inflated at the moment.
     
  8. Br4d

    Br4d 2018 Weeb Ewbank Award

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    A lot of those items have reasons other than normal inflation for the big rises.

    Cars and Used Cars are both up in a big way because car manufacturing is under heavy pressure as the chips necessary for the onboard computers are in short supply due to Covid-based manufacturing slowdowns in Asia.

    Airfare rises are because fewer people are flying due to Covid, causing airlines to have to raise prices to fly economically. This effect is further amplified by the number of ghost flights that airlines have to run to keep their routes and terminal slots.

    Furniture and Coffee rely on importing that has been dramatically affected by the port slowdowns due to... Covid.

    All of this suggests that as the pandemic recedes prices in these areas will drop, in some cases dramatically, and give the average consumer a real economic boon over the next couple of years. This assuming that the pandemic does not come back to bite us in the fall or produce a really dangerous variant that governments have to block at all costs.
     
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  9. Dierking

    Dierking Well-Known Member

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    soooo, this isn't looking like the year crypto is gonna cure cancer
     
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  10. Br4d

    Br4d 2018 Weeb Ewbank Award

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    Lots of governments looking to tame crypto. This will make it both a safer asset and also less valuable as a way to get around government regulation.
     
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  11. Acad23

    Acad23 Well-Known Member

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    It doesn't pretend to be.
     
  12. barfolomew

    barfolomew Well-Known Member

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    Price controls are a rational step if monopolization or a cartel economy is the goal. The larger firms and more efficient firms will be able to withstand the pressure and be forced to invest in themselves to make themselves more technologically efficient. The smaller and less efficient firms will be unable to remain technologically competitive and be absorbed by the remaining firms or forced to join a new combine. The type of economy we have now is one of too big to fail/cartelization. Without price controls there is hardly a drive to invest in technological advancement for the large firms. We have an irrational economy price controls would give some rationalization to it.
     
  13. barfolomew

    barfolomew Well-Known Member

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    But you just blame it on biden anyway
     
  14. Acad23

    Acad23 Well-Known Member

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    I do?

    I must have BDS... :confused:
     
  15. barfolomew

    barfolomew Well-Known Member

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    Among a lot of other diseases
     
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  16. stinkyB

    stinkyB 2009 Best Avatar Award Winner

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    Not feeling it.... I went for the darker leather package on mine. Easier to sleep on the plane.

    also, gas up again today. Price of crude has gone up 2% the past month. Price of gas has gone up 11%
     
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  17. FJF

    FJF 2018 MVP Joe Namath Award Winner

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    Doesn’t the camel hair show up too much on the dark leather? I feel like you’ll be constantly vacuuming.
     
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  18. stinkyB

    stinkyB 2009 Best Avatar Award Winner

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    No camels here, but the dog hair can be a bitch.... the dark leather hides some of the german shepperd hair though, but in the end, that's for my staff to handle
     
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  19. Acad23

    Acad23 Well-Known Member

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    All of my ailments were self-induced.

    And I had a shit load of fun inducing them... :oops:
     
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