- Joined
- Oct 11, 2023
It's called Keiretsu. Basically companies buy a bunch of each other shares making it so that they are insulated from the financial markets. It is super super important and a large reason that the stuff in Japan works and the stuff in America doesn't.Someone once explained to me why Japanese corporate law makes it easier to sustain an IP without having a PE firm or a shareholder suit buttfucking you. I don't remember the exact explanation. But basically, in American law, foregoing revenue today because you don't want to hurt your company's long-term stability is a good way to end up liquidated, no real concept of eating your seed corn (remember Guitar Hero? Once a billion-dollar IP now worth $0). So our whole business culture is about maximizing revenue NOW NOW NOW TODAY OMG DO IT NOW. If you're starting a company, investors want to hear that you'll be making $100m/yr in five years, or you get zero. If you're at a big, sick company, bleeding after decades of mismanagement, they want to hear you can turn it around and become #1 in the industry with 80% market share within 5 years.
I'm really glad to see more people learning that the way the financial system works fucks over everything by demanding short term gains at the expense of long term development.