In the 19th century we'd recognize what Musk did as an immense scam, aka watered stock. A reasonable tax proposal would be to tax SpaceX's overvalued equity at 10% a year.
Anything above 10 times revenue or twice book value. Whatever. Just something to prick the insanity.
Many users attacked Gary Marcus's claim that SpaceX valuation is an immense scam and call for equity taxes, dismissing the views as ignorant of economics, finance, and free markets.
are meme stocks ok? do we need to rethink the risks and incentives?
i don’t endorse the specifics here but it’s time we raise these questions.
In the 19th century we'd recognize what Musk did as an immense scam, aka watered stock. A reasonable tax proposal would be to tax SpaceX's overvalued equity at 10% a year.
Anything above 10 times revenue or twice book value. Whatever. Just something to prick the insanity.
The ability of Musk to use massively inflated stock to do real things - acquire firms, borrow against, et al - is just a form of counterfeiting.
@matthewstoller If you think the stock is overvalued then short it or buy long-dated out of the money puts.
Some think the stock is overvalued and some think it is undervalued.
No need to bloviate here, just put your money where your mouth is if you are so confident.
@matthewstoller No, it's just a highly speculative stock. The outcomes run the gamut from bankruptcy to SpaceX controls space commerce. It's wildly overpriced to underpriced depending on your assumptions.
Personally, yes, I think it's overpriced but that's what a market is for.
@matthewstoller Short it then Matt
Big money awaits you
@matthewstoller You want to tax a company based on the value of its stock which the free market determines?
A 5 year old would understand why this is a very stupid idea.
@matthewstoller It's called collateralization and is the engine for economic growth. Americans do it when they take out a mortgage. Elon does it to build rockets and rescue astronauts. There is definitely something wrong with you.
@matthewstoller 10 companies that are above 10x revenue. Your "reasonable" tax proposal violates the 16th Amendment. Forcing a company to sell 10% of shares every year deletes the company in 5 years by destroying shareholder value exponentially.
@matthewstoller So you want to tax all Americans who own that stock? All 150 million of them?
@matthewstoller How big is your short position in spacex?
@matthewstoller Just admit you’re a communist already
@matthewstoller this is gonna trigger people lol
@matthewstoller Watered stock - that is what it is - but haven’t heard that term for fovever.
@matthewstoller The useless leeches are lining up to spend money Elon Musk doesn’t have. They’re all great ideas of course, but this one is really great because it’s just pure petty spite from a big fat fucking zero.
@matthewstoller The beautiful thing about freedom is that each of us gets to decide how much we value SpaceX stock and we can either buy it or sell it and you can fuck off
@matthewstoller So I assume you’re shorting SpaceX in order to make millions?
@matthewstoller Massively inflated by who? Don’t buy it. This isn’t some conspiracy
@matthewstoller You can't tax SpaceX. It is operating at a loss. Taxing debt or unrealized capital gains violates the 16th Amendment.
If you don't like $SPCX and truly believe it is overvalued, and many do, you should all assert your 1st Amendment and short it to take it down.
@matthewstoller
@matthewstoller Gotta prick the insanity, sure can't prick the conscience.
