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The natural interest rate plus a bit.

If you can earn 25% percent in profits in the current environment then it is a clear indication of an inefficient market - a market that needs to be regulated in order to create efficiency (like in this case as with many other cases: remove monopolistic behavior).

While it is problematic if you can't derive profits from productive activities it is also problematic when entities derive unsustainable profits - also for the party deriving the profits.

If there is not a bit middle class to consume products, then there will not be be a market to supply products to.



Targeting profit rarely helps. The big players can afford the financial engineers to make the profits negligible from an accounting perspective. Likely funneled into growth. The small players cannot, so you put them in a situation where selling to a big player is rational. And the oligopoly grows.


The current economic environment definitely over indexes on very abstract metrics to steer, which is problematic.

I am also not proposing any formal system.

I am saying that it is quite easy to spot profits that are too high.

I am also saying that the governments role is to ensure efficient markets.

In this case it is suing RealPage.

It could also be making it easier to make housing in a specific area to counter under supply.

it is all regulation.




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