Billionaire hedge fund manager unironically decries people trading stocks to manipulate markets
Give a sweep to billionaires and hedge funds!
Social Capital CEO Chamat Palihapitiya said the rich should not be supported by the state.
In his opinion, ordinary Americans are more in need of financial assistance..
Palihapitiya is also one of the first bitcoin enthusiasts.
The head of Social Capital said in an interview with CNBC that the American wealthy should not be bailed out for taxpayer money. They must suffer equally with everyone.
Last month, the US passed a bill providing for a package of measures to support ordinary Americans, small businesses and corporations. As the authorities assured, they managed to find the necessary balance.
However, the continued unprecedented injection of liquidity into the financial system by the US Federal Reserve suggests otherwise. It looks like the authorities are prioritizing powerful liquidity injections into financial markets and supporting major companies..
This approach is fraught with the fact that while large corporations receive support, the purchasing power of ordinary citizens will seriously deteriorate, as well as their financial situation in general. Such a policy will no doubt only aggravate the current crisis..
Chamat Palihapitiya, entrepreneur, founder and head of the venture capital firm Social Capital, recently warned about this, without hesitation in harsh expressions..
“Let them go bust!”
In a recent interview with CNBC, Palihapitiya condemned the position of the authorities, which are seeking to save billionaires and hedge funds in the first place during the coronavirus pandemic. He believes that America’s main wealthy must face the consequences of the crisis on an equal footing with everyone else. “Who cares? Let them fly into the tube! ”- said Palihapitiya.
The U.S. shouldn’t bail out billionaires and hedge funds during the coronavirus pandemic, Social Capital CEO Chamath Palihapitiya says. “Who cares? Let them get wiped out. ” https://t.co/dIbizumtqG pic.twitter.com/u8BSVvr0B1
– CNBC (@CNBC) April 9, 2020
This comment quickly gained popularity on the web and received the support of many readers. For example, one user wrote that Chamat is absolutely right, arguing that neither taxpayers nor the government should care about such companies. “If they can’t survive, they deserve to burn out.”.
He was echoed by another Twitter user who lamented that we are stifling innovation by supporting the same inefficient managers and old money management strategies instead..
Exactly. We are killing innovation, and keeping the same executives who mismanaged money to begin with. No one asked to take up debt, do share buy backs, keep paying high divided, and inflate their own salaries by risking the companies future.
– Xeno (@xenosecurity) April 9, 2020
As Palihapitiya explained, Wall Street artificially maintains the false belief that corporate bankruptcy is inevitably associated with the layoff of all employees. In fact, it most often comes down to buying / taking over and changing leadership. As a result, the main victims are those who speculated in the company’s assets – and they just do not deserve support, because they themselves are not the backbone of the economy.
Also Bitcoin bull
It can be noted that the position and opinions of Palihapitiya are always inextricably linked with his firm belief that no one in the market deserves indulgence and special treatment. Unsurprisingly, for the same reason, he is a staunch supporter of Bitcoin and the decentralized blockchain..
He bought his first bitcoins back in 2013, and at some point, according to his own statement, Palihapitiya owned about 5% of all BTC in circulation..
Unfortunately, it is now difficult to predict how the current global crisis will affect cryptocurrencies, which have never faced anything like this before in their history. Moreover, it was found that the correlation between MTC dynamics and global market sentiment in relation to risk was not as strong as expected..
Only a battle test will be able to show whether Bitcoin is really suitable for the role of an effective alternative tool to overcome the new crisis. It is possible that all hopes of crypto enthusiasts will go to pieces, and digital currencies will suffer no less than traditional financial assets..
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