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Main Paineframe posted:Why should it be illegal? What value does a LBO add to the economy? It makes a tiny group of people rich at the expense of a large amount of workers. Sure, you can drive a company into the ground without saddling that company with your debt from buying itself, but LBO's are essentially designed to do that.
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Nov 3, 2022 22:49
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Not in any way an economist, but isn't it in a way similar to a home loan? You put down a bit of the money to buy a house, and the majority of the debt is held against that property.
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Nov 3, 2022 22:57
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I guess you can't start smashing the poo poo out of your home to reduce your costs, so you're encouraged to look after it and improve it where it needs it.
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Nov 3, 2022 23:00
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Senor Tron posted:Not in any way an economist, but isn't it in a way similar to a home loan? You forgot the part where you sell the rooftiles, floorboards and bricks then walk away with the profit while the bank deals with the now worthless property 
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Nov 3, 2022 23:01
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Senor Tron posted:Not in any way an economist, but isn't it in a way similar to a home loan? Yea except most people aren't buying a house, selling it off piecemeal, and then claiming the house is bankrupt while the buyer got rich and isn't responsible for paying the loan back. Edit: f.b.
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Nov 3, 2022 23:02
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Senor Tron posted:Not in any way an economist, but isn't it in a way similar to a home loan?
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Nov 3, 2022 23:03
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Senor Tron posted:Not in any way an economist, but isn't it in a way similar to a home loan? As a homeowner who's leveraged their way into ownership, you end up with a house at the end of your debt repayment, and you have a vested interest in it's upkeep. Even flippers generally improve the value of the asset which they've bought with other's money, and then rely on arbitrage to extract a profit. Both of those scenarios mean the buyer is on the hook for the debt if they can't make the purchase work. But LBO firms generally do so with the express interest of destroying the asset they purchase, and the asset they are destroying is the also responsible for the debt incurred in purchasing itself.
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Nov 3, 2022 23:06
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If the LBO destroys the value of your newly bought asset, it’s you who loses money. And if interest rates go up, you’re the one paying the swollen sums. LBOs make deals happen, but they don’t make deals good.
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Nov 3, 2022 23:08
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Vegetable posted:If the LBO destroys the value of your newly bought asset, it’s you who loses money. And if interest rates go up, you’re the one paying the swollen sums. LBOs make deals happen, but they don’t make deals good. In general, if I buy a house, I don't get to declare the house bankrupt after I sold off the roof, copper, and appliances for my own profit.
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Nov 3, 2022 23:43
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Jaxyon posted:In general, if I buy a house, I don't get to declare the house bankrupt after I sold off the roof, copper, and appliances for my own profit.
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Nov 4, 2022 00:18
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cat botherer posted:I knew a guy who did that, actually, when he got foreclosed in '08. The bank got mad but nothing came of it. I guess you could maybe purchase the house through a shell corp created for that purpose? I mean people do that but it's not common.
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Nov 4, 2022 00:57
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Jaxyon posted:I guess you could maybe purchase the house through a shell corp created for that purpose? This guy seriously ripped out the showers, power outlets, all the appliances, the interior doors. That place was hosed. A true hero.
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Nov 4, 2022 01:01
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Vegetable posted:If the LBO destroys the value of your newly bought asset, it’s you who loses money. And if interest rates go up, you’re the one paying the swollen sums. LBOs make deals happen, but they don’t make deals good. this is false the basic economics of an LBO are the unsecured creditors are the ones who get hosed - i.e. employees, trade creditors, and other pre-petition debt or debt of people who don't have high-priced lawyers writing their contracts the new secured lenders do fine, the new equity doesn't lose money because they put little money up and they extracted that much early on, but when the company goes bust those unsecured creditors get peanuts while the people who supplied the LBO financing get the company
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Nov 4, 2022 01:12
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cat botherer posted:Probably. I doubt they'd go after you for anything criminal for that kind of small potatoes stuff, and the shell corp would probably make it more trouble than its worth to sue. https://youtu.be/eHANLC9JtWI
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Nov 4, 2022 01:16
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Lol https://www.reuters.com/technology/musk-orders-twitter-cut-infrastructure-costs-by-1-bln-sources-2022-11-03/
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Nov 4, 2022 01:17
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withoutclass posted:Lol https://www.reuters.com/technology/musk-orders-twitter-cut-infrastructure-costs-by-1-bln-sources-2022-11-03/ Save on cloud costs by making dev and prod the same infrastructure. So simple.
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Nov 4, 2022 01:21
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withoutclass posted:Lol https://www.reuters.com/technology/musk-orders-twitter-cut-infrastructure-costs-by-1-bln-sources-2022-11-03/ "What is this whale, and why is it on the front page?! Have we been hacked?!"
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Nov 4, 2022 01:24
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Irony.or.Death posted:So the real answer is pretty obvious, but what's the economist fantasy explanation for why this is a good and legal thing? If it was a bad thing then the free market would not allow it to be profitable.
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Nov 4, 2022 01:25
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The free market is a boogieman, it has no real power except what we give to it.
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Nov 4, 2022 01:39
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From the Reuters article:quote:The company is aiming to find between $1.5 million and $3 million a day in savings from servers and cloud services, said the Slack message, which referred to the project as "Deep Cuts Plan." I know! What's the one piece of discretionary spending we can absoluely cut!!!!
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Nov 4, 2022 01:57
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Does Elon even take a salary at Twitter? I mean he certainly could but it would be better for staff morale if he didn't. Also he should hire back their advertising liaison. Kwyndig fucked around with this message at 02:07 on Nov 4, 2022 |
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Nov 4, 2022 02:05
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Isn't that 3 million a day just the debt interest payments that Musk just loaded onto Twitter? 
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Nov 4, 2022 02:10
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Seems weird to be talking in the same breath about rebooting Vine and slashing infrastructure expenditure. Video streaming, I assume, costs a metric fuckton of money to maintain.
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Nov 4, 2022 02:15
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Kwyndig posted:Does Elon even take a salary at Twitter? Is there any amount of money that would persuade you to take the second choice?
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Nov 4, 2022 02:17
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Kwyndig posted:Does Elon even take a salary at Twitter? since twitter runs at a loss he would just be taking money out of his right pocket to put in his left pocket except paying the government taxes to do it
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Nov 4, 2022 02:19
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https://twitter.com/thisisme0311/status/1588328409091883015quote:To help ensure the safety of each employee as well as Twitter systems and customer data, our offices will be temporarily closed and all badge access will be suspended. If you are in an office or on your way to an office, please return home. 
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Nov 4, 2022 02:30
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Rocko Bonaparte posted:I'm just amazed he's jumping on NPR and PBS' turf with the "for one cup of coffee" thing. except npr gives you a tax credit or whatever and is passive media you can just turn on and half listen on the background, scrolling/doomscolling(lol gently caress anyone that un ironically say this, theyre the most do nothing slackvist people) and other bunch of social media blight is semi active and still requires you to pay attention and move your thumb/mouse wheel(unless its youtube's autoplay to regressive q poo poo hellhole)
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Nov 4, 2022 02:33
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It's going to their personal email... because they're going to immediately get frozen out. With no opportunity or incentive to pass on any individual knowledge. The living will envy the dead.
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Nov 4, 2022 02:37
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Morrow posted:It's going to their personal email... because they're going to immediately get frozen out. With no opportunity or incentive to pass on any individual knowledge. If Musk wasn't smart enough to lock down access to most of the important code/server stuff soon after sending this email, guess lot of people gonna have a busy night.
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Nov 4, 2022 03:29
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Morrow posted:It's going to their personal email... because they're going to immediately get frozen out. With no opportunity or incentive to pass on any individual knowledge. Isn't that standard practice for layoffs
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Nov 4, 2022 03:34
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I don't think even the most brazen corporate raider would go this far is burning s company
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Nov 4, 2022 03:36
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BabyFur Denny posted:Isn't that standard practice for layoffs Ayup. They turn it off before you get the talk so you don't get to email any parting shots.
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Nov 4, 2022 03:45
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BabyFur Denny posted:Isn't that standard practice for layoffs I've been through two layoffs that weren't at the end of a limited-term contract, and even the same day one let me close down some projects, say my farewells, make sure I have access to all the benefits from my personal email, etc. It was not through email, they made sure to have a video conversation with me (I'm not sure if they'd meet me in person if I were at the office, I was remote, like most of the workforce lol). Edit:  https://twitter.com/jenplusplus/status/1588047960004255745  
Absurd Alhazred fucked around with this message at 05:07 on Nov 4, 2022 |
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Nov 4, 2022 04:28
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Looks like Twitter might be messing around with AOC’s account. Her account got wiped and she can’t do mentions, apparently. https://www.thewrap.com/aoc-asks-el...res-skin-video/
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Nov 4, 2022 05:25
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Say what you want about AOC she's definitely earned the status as a Poster.
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Nov 4, 2022 05:46
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this is the kind of hands-on management I expect when Elon takes over a company
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Nov 4, 2022 06:21
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I've said it before, I can't believe anyone thought it would be a bad thing if Musk bought twitter. This is amazing.
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Nov 4, 2022 06:35
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Like I made Rusty Venture comparisons but I think this is worse, including getting hospitalised from having tons of broken glass in you.
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Nov 4, 2022 06:40
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Nah, this is like watching somebody you really don't like being hospitalized with a bunch of broken glass in them.
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Nov 4, 2022 06:44
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And here come the lawsuits.Ultraklystron posted:Sorry, the news just doesn't stop:
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Nov 4, 2022 07:55
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