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Better to be backed by overvalued, sketchy physical real estate than nothing at all (see also: TerraUSD).
by thematrixturtle 4y ago
Better to be backed by overvalued, sketchy physical real estate than nothing at all (see also: TerraUSD).
- jimmydorry 4y agoThey are backed by companies with near-zero or less than zero valuation (liabilities > assets). Many of these companies that are defaulting have no money on hand but have already sold apartments that they have not even started building yet. They are equivalent to a crypto that the market has lost faith in (both are worth nothing).