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14-11-2019, 07:02 PM. (This post was last modified: 14-11-2019, 10:28 PM by CY09.)
Post: #21
RE: SoftBank
My opinion is that if not for the VC money (funded by cheap money), massive inflation would have occurred.

Because of VC's banking, we have been enjoying cheaper products such as Grab, Spotify, ecommerce, cheap airline fees and the shale oil revolution. Most of these companies are burning cash and making losses. They have been financed by large swath of equity money. Examples such as The purchase of CapitaLand vouchers at 10% discount that is financed by e commerce, Grab offers you discount to paying your taxes, airline like scoots burn through millions in losses each year etc

In my view, once the easy money sauce stops, be prepared for massive inflation. A contrarian view that a loose monetary policy will stoke inflation.

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17-11-2019, 11:15 AM. (This post was last modified: 17-11-2019, 11:16 AM by gzbkel.)
Post: #22
RE: SoftBank
The Softbank-WeWork End Game: Savior Economics or Sunk Cost Problem?
Aswath Damodaran

Since my pre-IPO post on WeWork, where I valued the company ahead of its then imminent offering, much has happened. The company’s IPO collapsed under the weight of its own pricing contradictions, and after a near-death experience, Softbank emerged as the savior, investing an additional $ 8 billion in the company, and taking a much larger stake in its equity. As the WeWork story continues to unfold, I am finding myself more interested in Softbank than in WeWork, largely because it’s actions cut to the heart of so many questions in investing, from how sunk costs can affect investing decisions, to the feedback effects from mark-to-market accounting, and finally on the larger question of whether smart money is really smart or just lucky.

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