sure, but, like you don't need to be so tightly entwined that you're dependent on getting loans to make payroll finance your big investments, keep cash enough for your immediate needs
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having more working capital increases your cost of capital
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Replying to @sgodofsk @ded_ruckus and
think of it like this: having all that cash sitting in your business costs a lot because that cash could be used to do other stuff and not doing that other stuff, multiplied across every company, means real people have less real stuff, a LOT less real stuff
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everyone wants to pick up pennies in front of a steamroller
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close your credit cards all of them I dare you empty your bank account and keep it in a safe under your house its the only way to be sure
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the amount of cash a typical business would need to keep on hand to make payroll in a period of zero revenue for even a single month would not just make it unprofitable, it would make the business largely unviable short of a sector wide massive increase in prices
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Replying to @sgodofsk @eigenrobot and
that massive increase in prices is another way of saying everyone has way, way less goods and services
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Replying to @sgodofsk @eigenrobot and
let's walk through an example suppose you're a barber, you can't run your barber shop right now, can't pay rent landlord of strip mall would like to give you a mulligan, but can't because he has to pay mortgage mortgage broker can't offer forbearance bc he securitized the debt
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Replying to @sgodofsk @eigenrobot and
everyone goes out of business UNLESS Jay Powell steps in and says, we're buying $50bn of commercial mortgage backed securities per day, which he did
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yeah, I am willing to stipulate that the Virus Event is a special case and normal principles don't apply I'm thinking more like 2008, when the finance sector fucked things up and somehow this dragged down the entire rest of the nominally-productive economy for some reason
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it was less the financial sector and more the government
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Replying to @eigenrobot @ded_ruckus and
Mori Retweeted Mori
I have come to believe we should stop infinite money expansion via Fed banking and instead do all money expansion via UBI. Same dollar devaluation, only the primary goes to families instead of arbitrary inflating asset prices.https://twitter.com/moritheil/status/1240811016398700545 …
Mori added,
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Replying to @moritheil @eigenrobot and
Would also allow the market to adjudicate winners/losers rather than govt arbitrarily selecting them.
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End of conversation
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