The Miserable State of GAFAM
Looking for government handouts
YESTERDAY I had a lengthy conversation with someone from AWS. It seems abundantly clear that most employees there don't know what's going on because they drink the Kool-Aid and while they're fully aware of the R.T.O. plot to cause mass resignation and already saw reports about removing about 14,000 managers (of course it won't impact only managers) they wrongly assume everything is somehow OK and they know nothing about the company's debt, which drives the mass layoffs. Amazon is about 160 billion dollars in debt and it has growing pains. That's why it's canceling so many products and services; in some areas there are price hikes that infuriate clients.
It's difficult to tell what will happen in the coming years. Some media predicts the next US president will increase the national debt by many trillions of dollars (it grew by more than 2 trillion in the past year alone).
Bailing out GAFAM to delay the fall of indices (where the composite is GAFAMs* and many small companies) or temporarily prevent Wall Street's collapse comes at a great cost. The ordinary taxpayers bears that cost. In the case of GAFAMs, tax breaks and financial favours only exacerbate matters for the benefit of the few. Either way, this cannot possibly end well for the GAFAMs. It's a bubble. █
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* "GAFAMs" as plural can be more than a dozen companies, not only 5.
