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Comment Re:Missing from the article (Score 1) 40

I believe you make a valid point here. But you seem to assume that the actions of the administration are based on facts and not done out of vengeance. Given that Trump is a mafia boss, is that assumption correct?

In any case, restricting its use to American citizens only is likely difficult - people entering social security numbers into Claude to get access perhaps? Or requiring national security clearance? And we're just at the beginning of the AI boom, this kind of ban will only be effective for a short time, no?

Comment Re:Like A Crypto Billionaire (Score 1) 311

Rich people don't liquidate assets when they want to buy something.

They get a loan against their assets. At extremely good rates. And no, they never pay them back. The strategy is called "buy, borrow, die".

First, you need to understand that if the stock price goes up more than their (low) interest rate, they're still making money.

Second, the whole thing is rolled up only when the ultra-rich person dies. The assets are revalued to their current market price at the time of death, wiping out decades of built-in capital gains tax liability. The estate can then sell a portion of the tax-free assets to pay off the outstanding loans.

tl;dr: They don't liquidate assets, if they did they'd have to pay taxes.

Comment Re:He hacked capitalism (Score 1) 311

The whole point of stock markets and such is that you have hard core rational investors ensuring valuations are accurate.

In theory. In reality, that has always been bullshit. The various bubbles, crashes and other events prove that. Valuations on the stock market are based on expectations, and expectations always include an element that is not rational.

The result is the two most overvalued companies in history (Tesla and SpaceX).

True, though both of these companies do have an actual business and actual assets. There's plenty of companies on the stock market whose entire business can just pack up and leave tomorrow. Many of those are extremely highly valued. All the middle-men companies (ride sharing, food delivery, etc.) all work on the principle of outsourcing EVERYTHING. They hold no actual assets and their entire business model can be copied in a lazy weekend. Each and every one of them survives due to brand recognition, habit and by being just a little bit better in some way than alternatives. All of which can disappear in a week.

Tesla and SpaceX are overvalued. But they have factories and a workforce and produce things.Their value is not entirely made up.

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