Being a giant logistics company means you need a very large inventory management system and an even larger POS website. They got tired of capacity planning meetings for data center infrastructure, and needed to find something to do with spare capacity that they needed two years from now, but would take 3 years to grow into.

Hence computer rentals on the Internet were born.

They do make a political economy though.

Google is watching its cloud play disintegrate because its cloud is shit. They tried to give services away for years subsidized by their ad money. It's no different than Azure or AWS business models. However, the former has a walled garden of incomprehensible Windows admin shit that is 30 years old to force people to use the Windows cloud, and the other has a powerful first mover advantage that ate a large retail logistics company's entire net revenue for years before profiting.

Google squandered its runway launching and murdering products it couldn't sell ads on. The companies I worked with that used GCP left it as soon as their free terms expired. They were watching features get canned inexplicably or suffer production breaking changes by the same tech culture that kills the rest of their ad-free products.

It's almost like politics subs are ...political.

The "can" scenario involves them getting bailed out then immediately killing the tool that stops them from being insolvent. If they want to suicide, they can just do nothing for the same effect.

They literally can't. The new bank is using it to meet capital requirements in a tight market. The fear that other banks are failing might infect them makes them not want to lock up funds in investments.

They're moving it from one bank to another in most cases. In the cases where its being spent down (i.e. a lot of the startups that are burning VC cash on payroll, OPEX/CAPEX, etc.) that money was going into the economy either way, regardless of which bank it sat at.

What is happening though is a bunch of banks are getting defacto taxed to cover SVB and Signature's shortfalls on asset sales just to make sure those depositors can move banks, and that money that gets taxed will be replenishing the empty FDIC piggy bank for insurance. For the banks not affected by SVB, they're recapitalized with the funds they've borrowed, and then pay it back with minor interest to Treasury which gets to use it against the US budget anyways.

Do you want to be the 67 year old wearing diapers at the slots wagering on 1:billion odds, or do you want to wager on single shoe blackjack with a counting system and an understanding of basic odds?

Just because it is a casino doesn't mean you need to get fucked with that loser attitude of yours.

He's Bloomberg's rep on economics to go sit at the FOMC presser. He knew exactly what he was asking (whether or not Fintwit and cryptopumpers were shilling a false narrative about rate cuts based on a willful misinterpretation of the FOMC press release). Here's his Twitter:

https://twitter.com/mckonomy

You probably forget most of the people in here are trading in broker accounts with "betting pools" so low they can't even qualify for real time quotes. They're probably watching a 15 minute candle update on Yahoo Finance, thinking the entire movement happened all at once. These are the same people talking about gap downs/ups like the Asian and European markets don't exist.

This reporter probably has a better understanding of the economics involved than you and the entire generation of people who were stupid enough to support your dumb existence long enough so that you can write your moronic comment. Dude sits on the economic bench for Bloomberg, and is their chosen guy to go sit at a FOMC presser. His inert Press credential to get in there has more economic awareness than your entire brain. Read his Twitter you poor, deluded, dumb piece of shit: https://twitter.com/mckonomy

Except that's not what Powell said. Powell is leaving open the door to the possibility that further chaos may impede their ability to raise the long term rate, forcing them to delay but not pause raising rates while they resolve the next crisis. He's essentially telegraphing a subject they just finished discussing in FOMC.

If the FOMC were still focused on figuring out the scale of the damage from additional, post-SVB/Signature bank failures (i.e. if FRC or others had fallen), they might not have worried about a rate hike at this moment. As Powell said, additional bank failures in the short term were taking more money out than their interest rate hike could do. That's why they didn't do 50bps in this meeting.

He's well aware of what he was asking. He's from Bloomberg and writes economics articles on the same team as Matt Levine and many other econ-nerds. Some samples from his Twitter this week:

> For all the fears generated by massive Twitter misunderstanding of the central bank swap lines announcement yesterday... Today @ecb had one bid for $5 million; @bankofengland , BOJ , @SNB_BNS had zero. No funding stress at the moment.

> Why new @federalreserve lending isn't QE or the end of QT: The Bank Term Lending Program accepts Treasuries and MBS for one year from #banks looking to shore up their balance sheets. That money is not going to be used by those banks for investments or loans. 1/2

> And they're not going to buy Treasuries or MBS with it. It's not going into the economy. And it has to be paid back, with (admittedly nominal) interest. Loans to @FDICgov receiver banks also have to be paid back and aren't going into the economy. 2/2

Dude is 100% cutting to the heart of the matter and doesn't care about whatever retail / cryptoscam narratives are being pumped on Youtube and Fintwit.

A bunch of the meme runs last year were in Discord and Telegram channels that proliferated in splinter subreddits. PLBY was one of the main runs I remember because the WSB mod tied to it was also the subreddit mod for PLBY.

Inflation is transitory.

Here's the neater part: QE isn't tradable directly.