Fuckin'A. I mean, I ducked out of Sun Edison having only lost about $20. I knew it was a horrorshow. I did not know it had destroyed three billion in value. And I had no idea what a pigfuck Valeant was. I mean, you can't avoid the headlines. But HOW THE FUCK does a company that does 8 billion in revenue, and under a billion in profit, rack up THIRTY ONE BILLION DOLLARS in debt? Particularly when an investigation of their offerings turns up a stone crapton of generics that have been around for decades? I mean, their money makers appear to be cortaid and ativan. You're right, though, about the money quote. I follow Theranos much too closely because my wife hates Quest Diagnostics and Lab Corps with a blinding passion and we'd love to see someone disrupt the fuck out of that market. But all they really had was a college dropout in a Steve Jobs sweater and a $9b valuation. She's gotten 7 times as much money as Barry Minkow and he actually cleaned carpets. Time put it pretty nicely:
I want the hedge fund model to fade into the dust as much as the next guy, but the downside is that while the hedge fund guys lose their 2/20, the investors get buttfucked. We're in for some short term pain. But hopefully (and I mean I'm hoping against all reason) this is the leading edge of a general paring down of the finance sector, which is so hypertrophied that none of us can wrap our heads around it. This line of thinking has infected the minds of every CFO in America, while we forget that America didn't get rich by managing equities. Unfortunately, we probably need another melt down for these reasons. Crisis 1 apparently wasn't painful enough to overcome the finance inertia. Crisis 2 might be, although I fear now that the Tea Baggers are the de facto power in DC that the cure will almost assuredly be worse than the disease. President Cruz and his Goldman exec wife I'm sure could come up with some really creative "solutions" to what ails us. My fear is that we have a nuclear bomb dropped on the banks right around mid-August, which gives Trump's it's-all-the-Mexicans'-fault message just enough of a bump to propel him into office. I'm probably reading too much into it. Probably.
Oh, trust me I know. This was written by a friend's husband. (actually, I may post that) I think a lot of the smart money has already pulled in. Pulled into where, that's the problem- real estate is overvalued. Venture capital is overvalued. Bonds are near zero. It's kind of what you'd expect when a man who spent his career studying the depression was willing to drop money out of helicopters to prevent a liquidity trap. And I think that we have no more helicopters to fly.but the downside is that while the hedge fund guys lose their 2/20, the investors get buttfucked.