.@typesfast to @Noahpinion : "In my opinion, what’s caused all the supply chain bottlenecks is modern finance’s obsession with Return on Equity (ROE). To show great ROE, almost every CEO stripped their company of all but the bare minimum of assets...(cont) noahpinion.substack.com/p/interview-ry…
..Just-in-time” everything with no excess capacity, no strategic reserves, no cash on the balance sheet and minimal investment in R&D. We stripped the shock absorbers out of the economy in pursuit of better short-term metrics...(cont)
@esaagar @typesfast @Noahpinion Companies prepared for hundred year storms go bankrupt to more efficient companies before the storm ever comes. Unfortunate reality.
@esaagar @typesfast @Noahpinion Also making all inventory not just finished goods but inputs JIT
@esaagar @typesfast @Noahpinion Your opinion is half-thought. The reason for supply chain bottlenecks is volume increase coupled with disruption (covid related mostly, we'll see what happens with the ILWU) compounded by an industry that thrives on stability being upset by technological changes.
@esaagar @typesfast @Noahpinion But but but the FREE MARKET! Whatever finance is doing has to be the bestest most smartest thing for the country, because FREE MARKET! You didn't make FREE MARKET angry, did you? Let's throw some more essential workers into the volcano, just in case.