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Joined 3 years ago
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Cake day: June 20th, 2023

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  • When the banks were combined prior to the Great Depression they would use deposits from the retail side to fund investments. When investments lose money, and customers come to withdraw funds, the bank is unable to cover its obligations and can fail. When you combine that with banks lending money to each other, a single bank (if it’s big enough) can start a cascading failure.

    Glass-Steagall was passed in 1933. Prior to that the US had had a financial crisis every decade or so. 1933-2000 was an incredibly stable period financially speaking, there were a number of small banking scandals but nothing that threatened the whole economy. In 1999 congress repealed it and Clinton signed the repeal, and 9 years later was the 2008 financial crisis. And we’re back on track for one every decade again.


  • It’s extremely difficult to estimate the risk or chance, but the fact that (almost) everybody is aware, makes the risk bigger, because for some weird reason, everybody preparing for a financial crisis doesn’t make it less likely because people are prepared, but instead makes it more likely because nobody does anything when the uncertainty passes a certain threshold. And at that point the economy collapses.

    It’s because everyone is primarily concerned with making sure they’ll turn out okay, or is too committed to the failing investments that they keep doubling down. Consider the story of the big short: guys who saw the crash coming said it was coming, and when no one listened they made bets on how bad it would be.

    Our best case scenario is that we survive and get something like a worldwide Glass-Steagall act that prevents investment banks from also being retail banks.





  • Apple Vision Pro seemed doomed from the get go, but they really made it worse by not launching a cheaper headset with Air branding half a year or a year in to actually drive market share enough to make it worthwhile for developers. Could’ve given it an A series CPU since we now know it works in a laptop so why not in XR or whatever they’re calling this.

    I think Vision Pro was doomed regardless. Go back and watch the iPhone announcement, then the Vision Pro announcement. Every single person in the auditorium when Jobs is presenting the iPhone is thinking of the thousand things they can do with that device. In the Vision Pro announcement, there’s none of that energy. If they released something that left zero question as to its purpose, the price could sit at $3K and they wouldn’t be able to make them fast enough. Instead we got an Oculus that won’t support most games and costs 6 times as much.