Jim’s Daily Rant. Broken Models.
When studying for my CPA exam I had to do a lot of memorizing. It felt easy as it all was logical.
Then after I passed the exam I ran across a street definition of “Bankruptcy” that I had a hard time memorizing and wrapping my mind around. It was ”When your Outgo is more than your Income, your Upkeep will be your Downfall.”
A week ago I wrote this Rant Siphoning Gasoline With A Rubber Hose. It was about the McDonald's hamburger chain suddenly having to reverse their business model after 71 years of pure profits. In those years the corporate company pulled much money each month from Franchise Owners in the form of lease payments on the land.
But for the past few years, the Corporate is shipping money to the Franchise Owners to stay in business until the economy and patrons return.
This is a “Broken Business Model.”
Yesterday I posted this article: Amazon's $2 Trillion Empire Is Collapsing — And Nobody Can Save It. It is an excellent 24 Minute Video explaining how and why (greed) made them screw with their own business. They did what no father in the world would ever do – let your 14 year old son screw with the carburetor on your new jaguar!
Today BPEarthwatch posted this Podcast Markets Crashing/Amazon AI Leading the Fall!. It tells of Amazon making it as a $2 Trillion company by changing its Business Model by going for the title of “King Of The AI Hill” by paying $400 Million for an old George Washington University campus up for sale for $100 Million.
Amazon was in such a hurry up the hill they overpaid for the land. Then they needed computer chips made in the US for it and discovered there were none made. So they threw cash (loan) into a new vendor to capitalize itself to produce them.
Now it comes out that the good people of that Virginia neighborhood refused the AI Data Centers to be built there, so for the first time ever, Amazon backed out of the deal while holding two bags. One for $400 Million for a $100 Million old campus and the other $?? Millions as a business loan they may never see again.
This Thursday expect to see a run (down) on their stock valuations as they appear to no longer be hiding behind cash.
This is a “Broken Business Model.”
Today I posted From Jeannine - Airlines JUST Issued a Massive WARNING About Consumer Behavior. This 15 minute video indicates consumers are no longer able to afford to fly, leaving all the seats marked “Profit” empty. Because of the weight distribution of those empty seats, many airline companies may fall out of the sky in the long run.
This is a “Broken Business Model.”
We are now seeing broken Business Models everywhere we look.
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