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How is that different from the US situation? Isn't that exactly the US situation?
by themagician 11y ago
How is that different from the US situation? Isn't that exactly the US situation?
- tyre 11y agoYes, basically. Home owners were given mortgages they couldn't afford except under beyond-ideal circumstances. They then would refinance and take out other mortgages, until the whole house of cards came down. The Saudis could maybe handle a situation like this, given their natural resources. As the current price of oil has shown, however, being rich in natural resources has its own issues. The same principles apply across China, Saudi Arabia, and startups: at a certain point, you have to make money.