Comment by Havoc | Hacker News Reader

Comment by Havoc | Hacker News Reader

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>If I invest $100 in MSFT and you invest your entire life saving

Thats missing the point I'm trying to convey. Try this analogy:

If you owe the back 100 Mil you've got a problem. If you owe the bank a 100 billion the bank has a problem.

The rules shift if you up the stakes enough. Return, time frames, values etc start becoming malleable concepts. You think it's a coincidence that masa talks about 300 year time frames?

Not convinced this will work. But I am convinced he's a step ahead of everyone else in rolling this dice. And if it does work it'll crush everyone else.

>Or, to put it more reasonably

Nothing about this is reasonable. That's why it could work

> If you owe the back [sic] 100 Mil you've got a problem. If you owe the bank a 100 billion the bank has a problem.

SoftBank is big, but not big enough to threaten the solvency of the Gulf states. Nobody has an incentive to bail out the Vision Fund apart from Masa. He’s already raiding SoftBank's balance sheet.

The reason the bank line works is banks are highly leveraged. A small hole blows the stack. That gives the $10bn borrower leverage over the trillion-dollar bank. Not so with the Vision Fund, where the prime LPs are lending out of equity and the employees are the ones leveraged.

But they won't owe the bank 100 billion. They're going to owe several totalitarian states 100 billion. They're going to owe money to the guys that chopped up Jamal Khashoggi.

The thing is though, 100 billion is a lot for venture capital, but it's less than 1/10th of the market cap of some of the largest publicly traded companies. That's part of why everyone is so skeptical of Softbank, because the second they come into contact with a liquid market, they have problems.

>Nothing about this is reasonable. That's why it could work

No. Even if it does work that will not be why.

Definitely disagree. You're essentially making the argument that Softbank is too big to fail. This is not true.

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