Warren Buffett Can’t Find Anything Big to Buy

Blueneck

Former Staff
Jun 2007
53,804
40,320
Ohio
#31
In post #13 I argued that we're all more or less on the same ship, in that when the economy is recovering or booming, pretty much everyone is better off relative to the way things are when the economy is contracting or crashing. So if that's the case, even "mostly," then good leaders are going to need to support things that allow the economy to grow, which will always be able to be construed as "government helping the 1%." Just because it's possible to construe everything as a conspiracy theory by the rich to enrich themselves at the public's expense doesn't mean we should actually construe everything that way.

However, partisan operatives will insist things be construed that way because it's really easy to agitate and anger gullible people and then harness that anger to convince them to vote for your candidate.
I'm talking about stuff like Foxconn, Amazon, and this:

The real estate company owned by the family of President Donald Trump’s son-in-law Jared Kushner is trying to get a little help from federally owned lenders for its biggest purchase in a decade. Bloomberg has heard word that the Kushner Companies is currently in talks with Fannie Mae and Freddie Mac about a loan for a $1.15 billion purchase of rental apartments in Maryland and Virginia.
Kushner Firm in Talks for Federal Loan to Finance $1.15 Billion Purchase

Why can't these people with all their damned money insist on making ginormous investments and then expect the government to back them up, give them tax breaks, build infrastructure, etc. If Kushner can't get a loan from a private bank to buy such a huge amount of property, buy less property.

Are you going to tell me the magnitude of their ambitions don't have anything to do with making sure they're too big to fail?
 

Macduff

Moderator
Apr 2010
93,965
31,765
Pittsburgh, PA
#32
He knew his advocacy would have zero effect. It takes a special kind of cowardice & scumbaggery to take a stand when you know it's not going to count.
In fairness, we all do that every day on this message board lol.
But I get your point. He's acting like he's willing to pitch in even more and he knows he won't have to.
 
Feb 2011
16,587
5,843
Boise, ID
#33
I'm talking about stuff like Foxconn, Amazon, and this:

Kushner Firm in Talks for Federal Loan to Finance $1.15 Billion Purchase

Why can't these people with all their damned money insist on making ginormous investments and then expect the government to back them up, give them tax breaks, build infrastructure, etc. If Kushner can't get a loan from a private bank to buy such a huge amount of property, buy less property.

Are you going to tell me the magnitude of their ambitions don't have anything to do with making sure they're too big to fail?
I think specific issues and circumstances might deserve all sorts of heavy scrutiny, especially when they reek of corruption and government picking winners and losers and not applying taxes or laws evenly. But I don't think scrutinizing those cases requires also adopting broad partisan class rhetoric and over-generalizing the entirety of modern civilization as being rich exploitation of the poor.
 

Blueneck

Former Staff
Jun 2007
53,804
40,320
Ohio
#34
I think specific issues and circumstances might deserve all sorts of heavy scrutiny, especially when they reek of corruption and government picking winners and losers and not applying taxes or laws evenly. But I don't think scrutinizing those cases requires also adopting broad partisan class rhetoric and over-generalizing the entirety of modern civilization as being rich exploitation of the poor.
IMO, the promises businesses make in negotiating these deals are often over the top, like Amazon said it would hire something like 20,000 people in HQ building but does that even happen? With Foxconn they started out saying they' would manufacture computer monitors then changed it to something else then said they weren't sure what they were going to do. I really think some of these claims are just made up bullshit to get the gov't involved as a co-investor, in Foxconn's case they stand to get cash in lieu of tax credits:

Foxconn could get up to $200 million in cash a year from state residents for up to 15 years

A moral hazard if I ever saw one.
 
Feb 2011
16,587
5,843
Boise, ID
#35
IMO, the promises businesses make in negotiating these deals are often over the top, like Amazon said it would hire something like 20,000 people in HQ building but does that even happen? With Foxconn they started out saying they' would manufacture computer monitors then changed it to something else then said they weren't sure what they were going to do. I really think some of these claims are just made up bullshit to get the gov't involved as a co-investor, in Foxconn's case they stand to get cash in lieu of tax credits:

Foxconn could get up to $200 million in cash a year from state residents for up to 15 years

A moral hazard if I ever saw one.
This continues on from your previous post, so I would just reiterate mine. Clearly bad specific deals might be worth ridicule, but do not justify overgeneralizing them to the entire private sector with sweeping class struggle rhetoric, nor relate very closely to this particular story about Berkshire Hathaway.
 

Blueneck

Former Staff
Jun 2007
53,804
40,320
Ohio
#37
This continues on from your previous post, so I would just reiterate mine. Clearly bad specific deals might be worth ridicule, but do not justify overgeneralizing them to the entire private sector with sweeping class struggle rhetoric, nor relate very closely to this particular story about Berkshire Hathaway.
My biggest complaint is that the recipients are huge companies that really don't financial help and smaller businesses get stuck picking up the tab in lost revenue.
 

Similar Discussions