4 ms·
> ideally, there would be a 3rd path, which would be direct forgiveness of those debts for a small period. All creditors would take the haircut, instead of the
by sagarm 7y ago
> ideally, there would be a 3rd path, which would be direct forgiveness of those debts for a small period. All creditors would take the haircut, instead of the debtors. this means that incoming money would go back into the productive economy.
Isn't bankruptcy exactly this, on a firm level?
- nickff 7y agoIn a bankruptcy, the stock-owners lose all their equity, and the bond-holders take a hit. The parent appears to be proposing that the bond-holders take a hit, in an attempt to preserve some equity for the stock-owners.