Re:Paul Singer, Doomsday Investor
by icebraining on Wednesday August 22, 2018 @04:12AM
(#17817157)
They don't have that money to spend, because that money came from the sale of the previous fans, but now it's the investors that are selling them.
Before: Importer spends $100 to buy the fans, spends $10 to ship, gains $150 from sale. Net: $40
Now: Finance guys spend $100 to buy the fans, pay $50.01 to the importer to ship them, then sell them for $150. Net (for the importer): $40.01. The finance guys are down $0.01, but they get Real Bucks from that.
The real economy gained a mere penny. It just added complexity to the whole thing, for no real gain.
Before: Importer spends $100 to buy the fans, spends $10 to ship, gains $150 from sale. Net: $40
Now: Finance guys spend $100 to buy the fans, pay $50.01 to the importer to ship them, then sell them for $150. Net (for the importer): $40.01. The finance guys are down $0.01, but they get Real Bucks from that.
The real economy gained a mere penny. It just added complexity to the whole thing, for no real gain.