lmao
NONE OF THESE FUCKING TECH START UPS MAKE ANY FUCKING PROFIT WE DON'T HAVE AN ECONOMY WE HAVE A GIGANTIC CONTINENT-SIZED PONZI SCHEME
IT'S DRIVING ME FUCKING INSANE, IT'S LIKE THE BROWNFIELD GUYS FROM THE BIG SHORT WHEN THEY SEE THE VALUE OF SECURITIES KEEP GOING UP DESPITE RECORD FORECLOSURES AND REALIZE THE CORRUPTION IS JUST THAT SYSTEMIC AND ALL-ENCOMPASSING THAT THE BANKERS AND METAPHORICALLY DEFY THE LAWS OF PHYSICS
The best part about The Big Short is that they see the whole system working as intended and walk away from it like:
:this-is-fine:
"This can be reformed."and by "best part" I mean "pure agony".
I mean not really? It ends on an incredibly bleak note where the banks got bailed out with no strings attached, one small-timer was prosecuted for fraud, every institution at every level of the economy abetted the fraud, and the big short-sellers who are our protagonists can't even take the moral high ground because they massively profited by betting against the health of the American economy which had real consequences for working people when it imploded. Kind of the whole point of the film is that the economic system is irredeemably corrupt and even trying to take advantage of their mistakes is intrinsically unethical.
They lost over half a billion dollars trying to play "extreme makeover home edition" and the only people getting fired are a quarter of the workers.
:capitalist-laugh:
no but you see the rich bosses are the ones taking the risk, yeah the workers lost their livelihoods but uhhhhh responsibility entrepreneurs investments idfk
If the workers didn't want to lose their jobs then they had the choice to work for employers that make better decisions, which they would of course be able to know in advance
How do you lose over have a billion dollars buying homes over a period where the average home price increased by like 30%?
Rumor seems to be that lots of homes have been selling above the asking price in cash, so it’s possible that Zillow was buying them at even higher prices than the “market” dictated
There was a tiktokker connecting the dots on how they were (attempting to) use their data about which zip codes and incomes like to look at/purchase homes in which areas, and use that for both arbitrage and price inflation purposes. If they think a house, could sell for more than they're listed for, just snap it up and resell. If an entire neighborhood could be selling for more, start buying up and holding, then wait and sell a couple at whatever you think the average should be for that area. Really creepy shit, and it's a good thing they fucked it up so bad.
:to-the-moon:
How's that "disruption" going, Venture Capitalists?
Zillow is publicly traded. I guarantee the VCs got out like bandits, while some shlub retail investors were left holding the bag.
at least this time RobinHood didn't have to grey out the "buy" button
It's because their AI algorithms predicted price movements and they lacked any statistical competency to understand their own predictions. AI is no crystal ball. These tech companies are delusional.
YUUUUUP they said as much on the earnings call after the news. they werent capturing the wild price appreciation, so they adjusted their algorithm and ended up way overshooting it. pretty wild for the biggest listing platform to say that
:michael-laugh: :michael-laugh: :michael-laugh: :michael-laugh: :michael-laugh: :michael-laugh: :michael-laugh: :michael-laugh: :michael-laugh: :michael-laugh: :michael-laugh:
Saw some folks speculating.this was a loss leader type program to effectively buy market share as a listing platform
they even said as much on earnings calls, though hoped to eventually get more $$ from selling ppl mortgages and other services/ make more money one they "scaled"
