star_wraith [he/him]

  • 30 Posts
  • 312 Comments
Joined 4 years ago
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Cake day: August 2nd, 2020

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  • And on top of that, they can always write down the value further due to “impairment” like obsolescence. For example, maybe a specific missile costs $1 million and it is straight-line depreciated for 5 years. After 3 years the book value is $400k. However, they can just say “we have a new missile that’s better so this old missile is obsolete, the value should only be $100k” then they can write down the book value even further.

    Also, if they use FIFO inventory accounting, only the oldest stuff on record is used EVEN IF IT ISN’T physically the oldest stock. So if the costs of the equipment get more expensive every year then what’s counted as being given to Ukraine has the lowest value, even if in real terms they are giving them the newest stock.


  • 8.9k upvotes. If there was ever a comment that convinced me Reddit is astroturfed / an op, this is it. Because they are objectively wrong. Or at least intentionally misleading.

    They’re focusing on the fact that the valuation equipment changed and ignoring what that actually means. Sure, by itself it doesn’t affect US taxpayers. But the point is, the military says they overvalued it by $2, so that allows them to send $2 billion more worth of equipment. That’s additional stocks of weapons that ostensibly have to be replaced, which is paid for by tax dollars.

    And while it’s not provably corrupt, it strains credulity to think this was not done in order to ship more weapons. Revaluations of this kind are much much more likely because someone wants it revalued, i.e. corruption.




  • Because the market processes all information at a speed that makes regularly beating the market impossible; and literally every investor on earth is looking for an “edge” at the same time. The stock market is “efficient” from the standpoint of, any profit you can make by trading on new information vaporizes in a nanosecond.

    I use quotes around the word “efficient” because I’m NOT implying the stock market is efficient from a Marxist or resource allocation perspective. Just that today’s stock prices reflect the sum of all information that we have about a given stock up to the moment.

    The outperformance of index funds is largely due to their lower expenses and the fact that money managers, just by trying to beat the market, often do the wrong thing.











  • I remember seeing a couple conclusions that some nuclear scientists came to recently:

    1.) 100 Hiroshima-sized nukes (the nuke dropped on Hiroshima was tiny compared to current nukes) going off could cause catastrophic climactic results across an area the size of a continent, i.e. a continent-wide nuclear winter that would potentially lead to hundreds of millions of deaths outside of lives lost to the immediate blast + fallout.

    2.) If the US and Russia both unleashed just 5% of their total nuclear stockpiles, you are definitely wiping out civilization and getting humans down to close to extinction levels.

    IIRC a lot of this is worse than previously understood because past models didn’t account for just how much dirt and debris are kicked up in nuclear blasts.