The CEO of Social Capital recently told CNBC that America’s richest people should not get a bailout from taxpayers. Instead, they should suffer the consequences like everyone else.
The US stimulus bill passed last month promised to be a striking “balance” between support from Americans, small businesses and businesses. However, the Fed’s relentless monetary impression tells a different story: that of stimulating financial markets and supporting big business seems to be its top priority.
The danger of prioritizing larger companies is that Americans will have little or no purchasing power. This will obviously only worsen the economic blow. This was the case of the CEO of Social Capital, Chamath Palihapitiya, recently made on CNBC in strong language.
“Let them fade away”
Social Capital CEO Chamath Palihapitiya recently published on CNBC and argued that the excessive concern over how wealthy businesses and Americans will fare during this crisis is wrong.
” We do not care? May they be wiped out? ” he said.
The United States should not bail out billionaires and hedge funds during the coronavirus pandemic, said Social Capital CEO Chamath Palihapitiya. ” We do not care? Let them go. »Https://t.co/dIbizumtqG pic.twitter.com/u8BSVvr0B1
– CNBC (@CNBC) April 9, 2020
The comment went viral recently and the Americans seemed to agree.
Here we go .. bailout for everyone .. but YOU the guy from the main street who respected the rules, invested in their 401Ks and HELD when the market went down .. .. you should have known better .. you are diluted and wiped apart.
– MRKD26 (@ MRKD26) April 9, 2020
Palihapitiya said there was “a lie perpetuated by Wall Street” that when a business fails, it necessarily fires all its employees. In fact, as Palihapitiya contends, most bankruptcies end up being simply redeemed. People who really hurt those who are the speculators and those who own the stocks – and they should be allowed to disappear.
So, in Palihapitiya’s words, these people and entities deserve no support; They’re not the ones holding the economy together, and it’s the market they chose when they decided to be just investors.
Also a Bitcoin bull
Palihapitiya’s opinions are intrinsically linked to the strong belief that no one in the market deserves favors. So it turns out that he firmly believes in Bitcoin.
The CEO of Social Capital said he bought a lot of Bitcoin in 2013 when he traded for only $ 80. It claims to hold around 5% of all BTC in circulation at any given time.
Because the financial system looks weaker than ever, Bitcoin could become a safe haven, but it all depends on which path the company chooses. For this reason, Palihapitiya maintains that “it is zero or it is millions”. [Forbes]
However, he did not suggest that Bitcoin would immediately fare well if this economic crisis worsens. In fact, it is still an extremely speculative investment that will swing even more wildly during this crisis. However, if Palihapitiya is correct, there is a potential for light at the end of the tunnel.
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