It’s not just the money raised.
75 billion I was tempted to say. It used to be a lot of money. Each billion being 1000 million. They aren’t truly sucking 1.7 trillion dollars out of the economy. What’s the economy anyway? It’s whatever Krugman and Reich say it is. Adam Sandler would like to say “Both Jewish” but this is not a Chanukkah song. As far as I know I am not married to either of those viewpoints although I am divorced. And that brings me to the epistemology of my argument. The Bezos’ divorce proved beyond any doubt that the market valuation of Amazon was not simply on paper. McKenzie’s sales of Amazon stock didn’t tank the price. The price has since risen along with the rest of the bulwarks.
If a company is valued at 1.7 trillion then that is real money that can be extracted from the market and put to other uses: in McKenzie’s case she deployed them for charity. And the market didn’t care. It merrily chugged along floating on an infinite sea of dollars. The clue to the mechanism is when the market dips before a big raise. The entire market falls by about 3 to 4% or so and money is extracted. Then as the IPO day arrives the market returns back to where it was. It happens before big Treasury sales too. Extrapolating further about the who and why mechanisms and the institutions involved will bleed in conspiracy territory. Suffice it is to say that it’s an infinite ocean of dollars. There is no lack.
The only question then is about where those dollars are deployed. The rest of it, the bull market, the bear markets, are periodic fund raises. When you start to see the bear market as not an ugly thing but a “raising of necessary funding for the next phase” then you start to understand Ponzi schemes. SpaceX by itself isn’t a Ponzi, the market is.
The unanswered question then is this: Who will saaaave your soul?
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MUSICAL CODEX
Jewel - Who Will Save Your Soul (Official HD Music Video)
