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Plus, in the event you have $300k of debt and no assets, you can file for bankruptcy.

• cityzen 9y ago
  Isn’t this how we ended up with people like Donald Trump? Risky behavior pawned off on everyone else?
  • lovich 9y ago
    its not really moral, but its incentived behavior
  • xapata 9y ago
    In this case, the bank that gives you a loan is the one taking the risk. Theoretically. The trouble is that the government doesn't like to let banks fail. Trump is special. The fact that Deutsche Bank was still willing to lend so much, despite his repeated bankruptcies is very interesting. If I recall correctly, he was involved in a lawsuit with one department at Deutsche over missed payments while a different department was signing over $700 million.