matty_a
matty_a t1_iyd4upk wrote
Reply to comment by ActualGiantPenguin in ELI5: How were a group of obscure companies the cause of the 2008 financial crisis? by WartimeHotTot
>but are private-sector entities.
Wellllllll....kind of. But this is ELI5 so we'll let it slide!
matty_a t1_iu4ln30 wrote
Reply to comment by johndburger in ELI5 How can a public company become private? by hellothere564738
Or eminent domain. Or asset forfeiture. Or condo boards. Or HOAs.
matty_a t1_itrij26 wrote
Reply to comment by BaldBear_13 in Eli5: I don't understand why there seems to be a general consensus that gdp will continue a trend of growth, and why this would be beneficial, considering the cyclical nature of economies and empires rising and falling. Isn't economic downturn on some level unavoidable or even beneficial? by candymannequin
> Periodic economic downturns might be beneficial in the sense that they kill off the old and inefficient companies, and enable newer and more advanced companies to replace them, which strengthens the growth in the long term.
They are beneficial to the overall economy over the long term, that is true. They are not beneficial in the short term to many people though. People lose their jobs, lose their homes, go hungry, etc.
They also vote out the leaders who are perceived to have caused the downturn, which is why leaders do everything possible to try and avoid them.
matty_a t1_j23uogu wrote
Reply to Eli5: Why are matress and laundromat stores often used for laundering money by Jojojoost010
The mattress store for money laundering is more an urban legend 0r a conspiracy than an actual fact.
There are two things that make for a good money laundering front business: high usage of cash and high but opaque profit margins. You want to be able to increase your margins to be able to run more cash through the business, but also not be obviously disjointed from a market.
That's why a laundromat is good (tough to track the inputs of cost, not a fixed market for laundromat services, cash heavy), gas stations are bad (easy to see if you are out of market, gas is a commodity), and things like art or "consulting" are the best.