4 ms·
The biggest repercussion I see is many, many companies goes belly up all at the same time, with lots of unemployment and a massive shock to the economy. Compan
by docker_up 7y ago
The biggest repercussion I see is many, many companies goes belly up all at the same time, with lots of unemployment and a massive shock to the economy.
Companies going bankrupt happen all the time, but if their demise is prevented because they keep getting capital injections from Softbank, then once there's a systemic event so big that they can't get their next infusion, then they will all go bankrupt in one fell swoop with a bunch of companies going bankrupt, the companies providing those companies services going bankrupt, hundreds of thousands out of jobs, etc.
Imagine if WeWork went bankrupt right now. All their employees would be fired, and all the companies that provide services (catering, janitorial, Salesforce? AWS/GCP? etc) would layoff those employees. The bankruptcy trustees would be making a mad dash to try to sell their assets before the markets collapsed, depressing the markets.
This is obviously a worst case scenario but that's what basically happened during the dotcom bust.