Olivia Michael | CNBC
If the government allows more stimulus funding, they should look at individual customers and small businesses, venture capitalist Chamath Palihapatia said on Wednesday.
The CEO of Social Capital gave a detailed account of his remarks to CNBC earlier this year in which he said that troubled airlines should not be granted bail because of poor management.
Palihapitiya said that before the epidemic, companies were already doing “the most horrible and stupid form of capital allocation you can imagine.”
He added that not a single extra dollar should go to these companies.
Among the weak decisions he cited were not investing in research and development, saving or putting more resources into his field. Instead, they focus cash on buying shares and raising share prices.
Commenting on the Delivering Alpha Conference presented by CNBC and institutional investors, Palihapitiya said this has been happening for the last 15 or 20 years. “If you were going to give money to these people, you should make a little more stringent guards for what you’re going to do in the future.”
Instead of direct rescue funding to large companies, as was done under epidemic-related programs approved by Congress and the Federal Reserve, future resources should go to small businesses and individuals, he added.
“If you really believe in trickle-down economics, let’s really see how trickle-down economics will work. Put the money in the hands of ordinary Americans,” Palihapitiya said in a comment before opposing the bailout of hedge funds and running weak companies. “I’ll assure you it will cost what they do.”
He spoke amid a tense atmosphere in Washington and Washington as Treasury Secretary Stephen Mucin and House Speaker Nancy Pelosi (D-Calif.) Are still pushing for more expensive deals for those affected by the Kovid-1 outbreak.
At the same time, investors continue to parse the election between President Donald Trump and former Vice President Joe Biden. The two took part in a terror debate on Tuesday night as stocks fell in Wednesday’s trading, although despite being controversial and unconventional, investor sentiment has not abated.
Palihapitiya described the discussion as a “symbolic dumpster fire” that was “too bad” but “in some ways … very clear.”
“This is a loss-making election at the moment,” he told the stock market. “They voted with their dollars.”
Still, he warned that politics has become more about the brand than the object, and also warned that one day reality TV star Kim Kardashian could become president.