Comments URL: https://news.ycombinator.com/item?id=48438691

Points: 6

# Comments: 0

They are

Not here, this is a casual discussion not a scientific seminar.

But use Occam's Razor and modern history

Point 1. Corruption has penetrated the highest echelons of USAnian politics. The president is unabashed in his corruption and has corrupted (is corrupting) the financial regulators (I follow Molly White who has been particularly good on this)

Point 2. Space-X is valuing itself at an astonishing value that is not anchored in its business activities. This has been covered a lot in comments here but also see Patrick Boyle's excellent commentary.

Point 3. The purveyors of these IPOs have been doing their best to get the rules changed (because reasons blah blah blah), the change will mean that managed funds, if they follow their usual practice, will feel compelled to buy in at the offer price - a massive inflow of capital that will make many people incredibly rich.

Putting all this together - a culture of corruption that has reached the pinnacles of the financial system, outrageous valuations and open conspiring to change the rules in favour of the whole scheme leads me to the conclusion that I am looking at the biggest (what is effectively the) fraud in history

I hedge my comments "effectively the" as I cannot be sure that this is conscious theft, or whether it is a confluence of powerful people facing juicy incentives who going with the flow are heading to a massive wealth transfer from working people (via pension funds) to elite capitalists

I do not think that this is not apparent to the governors of these huge pension funds. Those that have not tied themselves to an index following strategy will opt out I am sure - they are smart, studious and dutiful people by and large. So the people perpetuating this fraud may well be unable to pull it off.

But these are very worrying times. Especially for the USA.

What makes you think that?

> I wonder why picking on Rust specifically.

I did not see that. What did I miss?

Passive index investing was once the best strategy, perhaps is still. But in the face of such apparent malfeasance perhaps no longer

The big pension funds do have governors, they are mostly diligent and can change course

that will mitigate but not eliminate the downsides to this nonsense

Passive funds dominate ow, don't they?

History will be the judge.

But using nothing more than Occum's Razor and recent corporate history as a guide the reason that "...many are arguing for fast-track inclusion" is that they are crooked.

And just because yesterday's rules were "invest in S&P500" does not mean the governors of many (not all) funds cannot change the rules to dodge such blatant fraud

The managers of huge funds are not complete idiots- far from it- and they will do what they can, most of them, to fulfill their duties

Following the rules of passive indexes is the whole point.

Mēh! The passive indexes (biased to a momentum strategy, so not really passive - they are too big) may have had their day. The blatantly corrupt move to change the rules was clearly an attempt to game them, and even with out the rule change they will squeeze themselves through the rule gate with financial engineering

This will always be the trend in finance, the powerful manipulate the system to their benefit, the rest of us do what we can to survive....

Comments URL: https://news.ycombinator.com/item?id=48429395

Points: 4

# Comments: 0

Comments URL: https://news.ycombinator.com/item?id=48389790

Points: 3

# Comments: 0

Comments URL: https://news.ycombinator.com/item?id=48375283

Points: 39

# Comments: 18

China, obviously.

As far as I can tell it is in machines they cannot make work, servicing markets that do not exist for a service that will not matter for 20-years.

That and a third rate AI company that no body wants, except to get rid of.

This will probably go swimmingly at the start - but as time goes by and they raise more capital, Musk snorts more K and the glory fades, what then?

No body who has a choice is using Grok

> Is Grok solving Erdos problems?

Mēh! At a slower rate than models a fraction of the price

Very bad advice these days.

Tools are wielded

If you make a mistake wielding a tool, it is your mistake

Currently a Raspberry Pi 5

I am very pleased with it.

My Idiot Savant Pet

How?

> A lot of us don’t get a choice

Wise advice and facts... the terrible state of our industry