They're all shameless, remorseless, contemptible pathological liars
I think part are too stupid to actually understand the mechanics of large money flows and others are just dishonest.
The single largest reason why big tech companies (mag 7) absolutely went parabolic in valuations during the last 4 years is because of excess government spend. The way it typically works is government overspends -> this ends up over stimulating the economy as you have more dollars chasing same amount of goods -> you see wide inflation-> these excess dollars also have to end up somewhere and it's typically the stock market.
The inflation we saw during last 4 years was both goods i.e. food & services as well as asset inflation (houses, stocks, etc). See below Biden's list of spending, oh and this is outside the typical budgetary allocations. So what over 4 trillion (lets not count that last one in 2024) dollars was pumped into the economy? During the same time period, mag 7 market cap more than doubled from roughly 6 trillion to over 16 trillion. Now, not all of that market cap increase was a result of gov't overspend. Some was because of the AI trend, foreigners buying these US stocks, some was because these companies are profitable and have a moat, but undoubtedly excess liquidity = asset inflation. It's the same logic why home prices went up so much and young people now are absolutely fucked trying to buy even a starter home.
But watch out for the republicans they say! Watch out for orange man! Meanwhile wall street scooped up trillions under Biden, directly resulting from government actions. Wall street loves when government announces huge spending bills because everyone understands that money will eventually flow into private assets. They privatize the benefits via asset inflation, while publicize the liability (over 36 trillion) in public gov't debt. That's why they're so upset right now that this gravy train might get impacted.
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Here are the details on the biggest spending packages signed by President Joe Biden:
American Rescue Plan (ARP):
Signed: March 11, 2021
Amount:$1.9 trillion
Purpose: This package was primarily a response to the economic impacts of the COVID-19 pandemic. It included direct payments to individuals, extended unemployment benefits, funding for state and local governments, healthcare funding, and programs aimed at reducing poverty, among other initiatives.
Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act):
Signed: November 15, 2021
Amount:$1.2 trillion over five years ($550 billion in new spending)
Purpose: Focused on rebuilding America's infrastructure, including roads, bridges, public transit, broadband, water infrastructure, and energy. It aimed at creating jobs and modernizing infrastructure across the country.
Inflation Reduction Act (IRA):
Signed: August 16, 2022
Amount: Approximately $739 billion in new spending and tax credits over a decade, with offsets bringing a net deficit reduction of about $240 billion.
Purpose: This act included provisions for climate change mitigation, healthcare cost reduction, and tax enforcement. It's notable for its investments in clean energy and efforts to reduce prescription drug costs.
CHIPS and Science Act:
Signed: August 9, 2022
Amount:$280 billion, with $52.7 billion specifically allocated for semiconductor manufacturing incentives and R&D.
Purpose: Aimed at boosting domestic semiconductor production, research, and development to reduce reliance on foreign supply chains, enhance national security, and stimulate economic growth.
Omnibus Spending Bills for FY 2024:
Signed: Two packages were signed in March 2024, one for $460 billion and another for $1.2 trillion, totaling $1.66 trillion.
Purpose: These bills funded government operations for the remainder of the fiscal year 2024, covering various departments including Defense, Homeland Security, and Health and Human Services. They included funding for defense, domestic programs, and international aid.
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Since 2020, the total market capitalization of the "Magnificent 7" companies (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla) has seen substantial growth. Here's a summary based on available data:
In 2020, these companies had a combined market cap that can be estimated around $5 trillion to $6 trillion, considering their individual market caps at that time.
By mid-2024, the collective market capitalization of the Magnificent 7 was reported to be around $13 trillion to $16 trillion.
This post was edited by ofthevoid on Feb 8 2025 05:42pm