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I’m all for proper saving and loaning of money. I’m not exactly eager on profligate government spending. On the one side, Puerto Rico’s government officials sho

by whb07 7y ago

I’m all for proper saving and loaning of money. I’m not exactly eager on profligate government spending. On the one side, Puerto Rico’s government officials shouldn’t be borrowing money and spending lavishly when they know they can’t pay back. On the other hand, Wall Street got into bed with them knowing they’d get bailed out + charge fees for issuance. So while I can’t blame both sides, I am getting tired of the government being in bed with Wall Street, this isn’t “capitalism”. This is called crony capitalism. So... loan money to a terrible customer knowing the risks? Take it on the chin and call it a day.

gok 7y ago
The people who loaned the money are long gone. The article is about people who bought the debt knowing they would go bankrupt, but expecting to recover some of it through legal maneuvering.
- whb07 7y ago
  But the people who voted for those officials and were the beneficiaries of the money are still there. So people learn by paying a price and sometimes hard lessons are the best kind. Kinda hard for anyone to argue that racking up a credit card bill makes you a massive victim. Or perhaps in this case, your best buddy racks up a credit card bill while you hang out with him partying. Maybe you should help him pay back some of the spending you pushed him to take on.
- WillPostForFood 7y ago
  If the original buyers of the bonds were still holding them, would that then make the lawsuit legit?
- jshaqaw 7y ago
  True. But lets take the alternative. If an asset like a loan or bond was non-transferable meaning once made you had to hold it to term no matter what then the price of that loan would be higher to compensate for the illiquidity. And from the perspective of the borrower whether you pay to the originator of the loan or to a subsequent buyer makes no functional difference.
kiliantics 7y ago
capitalism is crony capitalism, it doesn't work any other way, you can see this going back since the beginning
- Jotra7 7y ago
  Shhhh... You will anger the enlightened techbros that are saving humanity through 10x returns.

by whb07 7y ago

gok 7y ago

The people who loaned the money are long gone. The article is about people who bought the debt knowing they would go bankrupt, but expecting to recover some of it through legal maneuvering.

whb07 7y ago
But the people who voted for those officials and were the beneficiaries of the money are still there. So people learn by paying a price and sometimes hard lessons are the best kind. Kinda hard for anyone to argue that racking up a credit card bill makes you a massive victim. Or perhaps in this case, your best buddy racks up a credit card bill while you hang out with him partying. Maybe you should help him pay back some of the spending you pushed him to take on.
WillPostForFood 7y ago
If the original buyers of the bonds were still holding them, would that then make the lawsuit legit?
jshaqaw 7y ago
True. But lets take the alternative. If an asset like a loan or bond was non-transferable meaning once made you had to hold it to term no matter what then the price of that loan would be higher to compensate for the illiquidity. And from the perspective of the borrower whether you pay to the originator of the loan or to a subsequent buyer makes no functional difference.

kiliantics 7y ago

capitalism is crony capitalism, it doesn't work any other way, you can see this going back since the beginning

Jotra7 7y ago
Shhhh... You will anger the enlightened techbros that are saving humanity through 10x returns.