> “ Remember that Wells Fargo is the 26th largest corporation in the world. They have plenty of money. They have lots of smart people (insert your "stupid banker" joke here) working for them. They have lots of highly-paid analysts that make these decisions. These are not spur-of-the-moment, panic-induced decisions.”
This is so comically untrue. Giant companies with forcefields of cash, lobbyists and corporate analysts make stupid panic-based decisions all the time. There are chaotic political battles, unilateral decisions made because one executive had a pouty fit over what another executive did, huge layoffs, price changes, project shutdowns, all based on emotions, political favors, vendettas, etc.
It’s the rule. The clean, well-supported decision that came from analysts with statistical rigor is the exception by far. The larger and more bureaucratic the company, the more extremely tilted towards politics it becomes.
These decisions are rarely punished by the market due to regulatory capture, bailouts, outright fraud, etc. which essentially occur continually for most large companies with no meaningful consequences, even when these acts are completely overt and public.
This is so comically untrue. Giant companies with forcefields of cash, lobbyists and corporate analysts make stupid panic-based decisions all the time. There are chaotic political battles, unilateral decisions made because one executive had a pouty fit over what another executive did, huge layoffs, price changes, project shutdowns, all based on emotions, political favors, vendettas, etc.
It’s the rule. The clean, well-supported decision that came from analysts with statistical rigor is the exception by far. The larger and more bureaucratic the company, the more extremely tilted towards politics it becomes.
These decisions are rarely punished by the market due to regulatory capture, bailouts, outright fraud, etc. which essentially occur continually for most large companies with no meaningful consequences, even when these acts are completely overt and public.