Comment by reactordev
10 days ago
Now replace Google with an EU company doing it in the EU for EU jobs and everything you described. It’s not like money only comes from the US.
You are right to be worried. US companies under this administration can’t be trusted to follow the law. Why should they, when our commander in chief isn’t and has a panel of judges who let him do whatever. Just the other day he suggested Obama be investigated for treason. So yeah, we’re toxic, and you all should seriously quarantine yourselves.
EU businesses are pretty conservative. They don't have the insane amounts of capital that arose in Silicon Valley as a result of the Bretton Woods system. There are companies that size, but they're all in, like, manufacturing, or coal mining. There's no EU company that both has a billion dollars and knows how to be AWS. There are companies with billions of dollars (euros) and there are different startup companies that probably could be AWS if they tried really hard, but never the twain shall meet.
> They don't have the insane amounts of capital that arose in Silicon Valley as a result of the Bretton Woods system.
Why would you say all personal finance advisors from Europ advise their clients to invest at least 50% in the US? The aggressive ones suggest 70-90%. 53% of The Norwegian sovereign fund is invested in the US, 24% in Europe and 23% the rest of the world. Their biggest investments are in Apple, Microsoft, Nvidia, Google, Amazon, Meta, Tesla, Broadcom, etc, as one would expect.
Why don't European investors move their investments from US index and into European companies and businesses? Norway alone has ~1 trillion Euros invested in the US. Surely they can move it to invest in European tech, no? that can make a couple of European AWSs.
Investors invest where the money is. The money is in the US. As a result of the factors I already stated.
The best way to get more euros over time appears to be to exchange them for US dollars, invest in US stock markets over time, and eventually exchange them back for euros. So rational investors will do that. It will work as long as the American regime doesn't collapse its currency due to overprinting, in which case all those euro investors will lose all their money.
An individual investor doesn't care about improving the economy of their country at all. They only care which investment will make the money today. And the investment market is just a collection of investors. Never make the mistake of thinking investment markets are rational economic planners - that's the fallacy of composition.
European governments may want to prevent this situation, but they're all pretty locked into the free-market regime, so there's not a huge amount they can do. They can't just give out free money, either, since there's a lot more state-backed financial crime and corruption over there, due to having enemy countries in close proximity.
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