Olivia Michael | Cnbc
If the government approves further incentives, they should do so for individual consumers and small businesses, venture capitalist Chamath Palihapatia said on Wednesday.
In an exploratory diarrhea against the troubled region, the CEO of Social Capital expounded on the comments he made earlier in the year to CNBC in which he said that troubled airlines should not be thrown out because they are so poorly managed .
Palihapatia said that prior to the epidemic, companies were already “the most horrible and idiotic form of capital allocation you could imagine.”
“Not a single extra dollar should go into these companies,” he said.
The poor decisions he cited were not investing in research and development, saving or putting more resources into his own business. Instead, they focused on cash to repurchase shares and raise stock prices.
“This has been happening for the last 15 or 20 years,” Palibhipatia said while commenting at the Delivering Alpha conference presented by CNBC and the institutional investor. “If you are going to give money to these people, then you should make something more strict guard for what you were going to do in the future.”
Instead of direct rescue funds for large companies, as was done under epidemic-related programs approved by Congress and the Federal Reserve, future resources should go to small business owners and individuals, he said.
“If you really believe in trickle-down economics, let’s really see how trickle-down economics will work. Put money in the hands of ordinary Americans.” Poorly run companies. “What I guarantee you they will spend.”
He spoke in Washington amid a tense atmosphere between Treasury Secretary Stephen Menuchin and House Speaker Nancy Pelosi (D-California), an effort to continue spending a synergy for those affected by the Kovid-19 spread.
At the same time, investors have continued to postpone the election between President Donald Trump and former Vice President Joe Biden. The two scorched in a raucous debate on Wednesday night, which, although controversial and unsympathetic, did not dampen investor sentiment as the stock fluctuated in Wednesday trading.
Palihapitia characterized the debate as a “shambolic dumpster fire”, which was “so bad”, but “in some ways … incredibly clear.”
“The stock market said that this is a no-loss election at this time,” he said. “They voted with their dollars.”
However, he cautioned that politics had become more of a brand than a substance, even warning that one day reality TV star Kim Kardashian might become president.