• 0 Posts
  • 42 Comments
Joined 2 years ago
cake
Cake day: October 11th, 2023

help-circle
  • I think you’re on to it here.

    This image seems to be ironically referring to an old Penthouse/Playboy cartoon from the 70s where a hippy is in a car waiting in traffic. He’s in a zippy little, gas-sipping car. Next to his car is another guy in a large gas-guzzling car. The hippy is saying something snarky to the other driver, referencing their car-size impact, or something like that.

    I did a quick image search, but can’t find the cartoon.











  • Or your neighbour does all the work instead of you, so you decide to buy soap from them. They’re next door, while Walmart is across the county line, so you decide you won’t charge yourself the extra self-tax with your neighbour.

    Walmart"s soap, which used to be $2, is now $3, while your neighbour’s soap is $2.50.

    A week later your neighbour sees that demand for their soap is huge because everyone is self-taxing. So they raise their price to $2.95 to make extra profit.


    In case you think this is just a contrived fiction, this is exactly what happened to many goods, like solar panels, with Trump’s first-term tarrifs. Americans paid over double the average world price for solar panels.

    Worse still, Trump knows this happened, yet somehow this time will be completely different. <sigh>




  • In the short term, the market is a voting machine, but in the long term, it is a weighing machine” - Benjamin Graham (“father” of value investing and mentor to Warren Buffett)

    Meaning that in the short term, stock prices can be swayed from a company’s true value by investors’ emotions and opinions.

    But eventually the stock price will align with the company’s actual profitability and growth potential.

    And you’re right that these are crazy times, and the “short term” irrationality can last a lot longer than past experiences.

    Historically, we’ve used examples like the 17th century tulip mania, or the dot com boom, but it won’t surprise me if Tesla becomes the poster child for this quote in the future.







  • The problem is that people who stand up to Trump don’t last long. It’s far worse if Trump perceives he’s the one being controlled like he’s “on a leash”.

    That’s why Trump had such a massive staff turnover in his first term. For example, over 90% of his original cabinet were fired or pressured out.

    On top of that, many of Trump’s picks were imprisoned or indicted. So the odds aren’t good that his people will do the right thing.

    It’s already looking to be far worse this time, especially given the corruption we’ve already seen from him since winning the election, and before he’s even in power.