That Alphabet profit claim is the first good argument I've seen in favor of taxing unrealised profits.
And before anyone gets their panties in a twist, most of you already get taxed on unrealised profits through your property tax. On the most damaging thing possible, a primary residence. But you gotta keep the wealth pump working on those proles... /S
Fun project for someone, add up all the Goodwill/Intangible assets of the Fortune 500 and divide by total assets. Then add up all the retained earnings of the same companies. I wonder what the results would be.
Goodwill is where, when you over pay for anything, fake or real, during the acquisitions, they make great reasons and create billion dollar valuable spreadsheets to dump the excess paid, amortization and depreciation can be a biggie but hey we will exclude it. It is where the future billion $$ write off occur just one time promise.
Retained Earnings is the bucket where, when everything is said and done for the year gets dumped. It's where all the **** from the income statement gets dumped after the year including depreciation, amortization, interest, taxes and a few other necessary business expenses that they don't like to pay so they exclude them from net income. Just like the door dashers of the world like to ignore, the true cost of operating their vehicles.
I was a contract forensic accountant for a high tech data cloud company in 2015. Our job was to scrub the **** out of the balance sheet and fix it, which required a lot of write offs, one time of course:-). I was amazed at the dog piles that laid everywhere and that was a publicly traded company. Private Credit and everything AI related has to have some many piles around every corner; I bet it smells really bad. Oh, I forgot they don't have to show their books until after the deal is done from what I have heard, requests to see them are routinely denied. Why? because they can.
Report long term wins exclude long term loss, a winning formula, until everyone realizes that every company on earth has to ultimately play with just one formula: assets=liabilities+owners equity. Nothing in history will change that formula. US.gov has a different set of rules, brrrrrrrr print, create digital currency for the excessive sponge.
suddenly i was struck by a thought: What value is analysis if it's all just going to be bailed out anyways? As long as you don't sell, you should arrive at the same place
Now you're getting to the crux of crony-capitalism!
At a certain point though, the loss of trust in the system can't be hidden anymore. But I think that's still far out. Oth it can go much faster than any of us anticipates.
i think its more like the movie groundhogs day. Those of us who realized this is horrible keep waking up to the same day on repeat. How do we stop the cycle? I haven't tried driving into the quarry with the groundhog but i doubt that'll work.
As long as you are sure you aren't a bag holder. 🧐
There is no guarantee of when you'll get your money back or that your particular clown world magic money box isn't the one that gets folded and split up to make the others whole. 💸💸💸
Bubble, boil and stew... But Sam might ask: "what if we have moved into a post p/e world, where it's just betting and gambling? Does 'reality' matter to money anymore?"
Very nice post. I wonder if we will get a Joseph Kennedy, like Roosevelt had, to make these financial markets work again or if we are just destined to have third world financial systems with no rules to make the playing field playable. I fear we blew our chance but we do have great 1920’s style rich.
doubtful. What would make them work again is a repeal (or reinstatement) of about any legislation in the past century concerning competition and regulatory appliance. Fat chance in that. 😏
Hi No1, some months ago you posted your recommended IB (Interactive Broker) setup, I couldnt seem to find it - can you post a link or give me the date of the post where I can find it - thanks
great thanks. I guess it was posted prior to your split into a regular subscription and a portfolio subscription (or maybe before you had subscriptions at all) - thanks again
You just described a lot of one-time plays to make things look good right away, which cannot be repeated, and which if removed show a negative view of actual earnings and profits.
I wonder what will happen next, or even in August.
That Alphabet profit claim is the first good argument I've seen in favor of taxing unrealised profits.
And before anyone gets their panties in a twist, most of you already get taxed on unrealised profits through your property tax. On the most damaging thing possible, a primary residence. But you gotta keep the wealth pump working on those proles... /S
We really don't hate clown world enough!
Fun project for someone, add up all the Goodwill/Intangible assets of the Fortune 500 and divide by total assets. Then add up all the retained earnings of the same companies. I wonder what the results would be.
Goodwill is where, when you over pay for anything, fake or real, during the acquisitions, they make great reasons and create billion dollar valuable spreadsheets to dump the excess paid, amortization and depreciation can be a biggie but hey we will exclude it. It is where the future billion $$ write off occur just one time promise.
Retained Earnings is the bucket where, when everything is said and done for the year gets dumped. It's where all the **** from the income statement gets dumped after the year including depreciation, amortization, interest, taxes and a few other necessary business expenses that they don't like to pay so they exclude them from net income. Just like the door dashers of the world like to ignore, the true cost of operating their vehicles.
I was a contract forensic accountant for a high tech data cloud company in 2015. Our job was to scrub the **** out of the balance sheet and fix it, which required a lot of write offs, one time of course:-). I was amazed at the dog piles that laid everywhere and that was a publicly traded company. Private Credit and everything AI related has to have some many piles around every corner; I bet it smells really bad. Oh, I forgot they don't have to show their books until after the deal is done from what I have heard, requests to see them are routinely denied. Why? because they can.
Report long term wins exclude long term loss, a winning formula, until everyone realizes that every company on earth has to ultimately play with just one formula: assets=liabilities+owners equity. Nothing in history will change that formula. US.gov has a different set of rules, brrrrrrrr print, create digital currency for the excessive sponge.
suddenly i was struck by a thought: What value is analysis if it's all just going to be bailed out anyways? As long as you don't sell, you should arrive at the same place
Now you're getting to the crux of crony-capitalism!
At a certain point though, the loss of trust in the system can't be hidden anymore. But I think that's still far out. Oth it can go much faster than any of us anticipates.
i think its more like the movie groundhogs day. Those of us who realized this is horrible keep waking up to the same day on repeat. How do we stop the cycle? I haven't tried driving into the quarry with the groundhog but i doubt that'll work.
https://www.youtube.com/watch?v=puXX-zVE2YA
As long as you are sure you aren't a bag holder. 🧐
There is no guarantee of when you'll get your money back or that your particular clown world magic money box isn't the one that gets folded and split up to make the others whole. 💸💸💸
Bubble
Bubble.
Bubble, boil and stew... But Sam might ask: "what if we have moved into a post p/e world, where it's just betting and gambling? Does 'reality' matter to money anymore?"
That DOES sounds like her!
Very nice post. I wonder if we will get a Joseph Kennedy, like Roosevelt had, to make these financial markets work again or if we are just destined to have third world financial systems with no rules to make the playing field playable. I fear we blew our chance but we do have great 1920’s style rich.
doubtful. What would make them work again is a repeal (or reinstatement) of about any legislation in the past century concerning competition and regulatory appliance. Fat chance in that. 😏
Excellent analysis No1.
"The sky wasn’t the limit anymore! The stars were"
Absolute GOLD!
😂
It's incredible how much they're rigging the markets to benefit Trump and his polling is still in freefall.
Hi No1, some months ago you posted your recommended IB (Interactive Broker) setup, I couldnt seem to find it - can you post a link or give me the date of the post where I can find it - thanks
That's on my other stack: https://no1spf.substack.com/p/ibkr-setup-guide-for-subscribers
great thanks. I guess it was posted prior to your split into a regular subscription and a portfolio subscription (or maybe before you had subscriptions at all) - thanks again
great synopsis of the scam - and overall situation. it will be interesting . . .
You just described a lot of one-time plays to make things look good right away, which cannot be repeated, and which if removed show a negative view of actual earnings and profits.
I wonder what will happen next, or even in August.
Tick, tock.