LyrArc Article Gist
The epitome of massive distortions in the way capital is allocated in capital markets of the last two decades even as healthcare, childcare, manufacturing technologies and infrastructure was starved of captal funding is Masayoshi Sen and Softbank which posted a $23 billion loss in the April-June 2022 quarter. This is one and half times the loss in the first quarter. Heard on the Street in WSJ dismisses Mr. Sen's contrition on these losses as this will continue into the future it says, and is simply the style of these types of extreme speculation funds. It obscures a larger problem in society and in America and Europe of capital markets giving the pass on such wasteful use of capital on huge scale amounting to trillions of dollars and not funding desperately needed healthcare, education, infrastructure, childcare and other needs of the 900 million people in these countries. Even the claims of profits hangs hollow on the necks of these investments, with dubious selection of many projects. Capital returns are insignificant or zero as the WSj says many of Softbanks funds have net zero gains since 2017. Yet extravagant demands for capital are met with extravagant supply where the needs or reasoining are the least credible in today's distorted capital market allocations causing egregious harm to the 900 million people of the US and Europe.   ...

LyrArc Article Gist
Softbank the epitome or synonym of waste on a huge scale of capital allocation for the last 2 decades in massively distorted capital markets when healthcare, childcare, manufacturing technologies and infrastructure is suffering from lack of funding, is hit with a loss of $23 billion for the second quarter which was one and half times the loss of the first quarter. As the WSJ reports Softbank and Masayoshi Sen was delirious in his own words during the tech booms of the last 20 years and its founder talked about bigger and bigger capital allocation even as productivity of capital declined rapidly. This happened astonishingly with little restraint in capital markets shown by participants even as healthcare in the ten years before the pandemic was not adequately funded, and education, infrastructure, manufacturing technologies were neglected which would have provided better returns on capital and served the interests of the American people and the world in a way that would have been said was well done had this been done. This went on astonishingly right into the pandemic period. Investments of about $50 billion were made in tech startup companies in 2021.  ...