This kind of reminds me of Dick Fuld's railing against "the shorts" in 2008. He was convinced that the market wasn't giving Lehman sufficient credit for its sub

This kind of reminds me of Dick Fuld's railing against "the shorts" in 2008. He was convinced that the market wasn't giving Lehman sufficient credit for its sub-prime portfolio, too. Based on accounts of the crisis, it's what derailed potential mergers and caused the bank to ultimately go under. In a world where 6-month Treasury bills yield 3% and junk bonds yield over 5% (JNK's SEC Yield is 7.22%[1]), I don't get why institutions would continue lending money to Affirm to make short-term loans to sub-prime consumers. Maybe they have a sufficient war-chest to withstand a few dry years. I don't know. > “In a recession,” he said, “0% is very attractive.” I'm really curious to see what happens when merchants balk at the fees required to offer those rates. A combination of late payments (disqualifying some existing customers) and higher rates (turning off new customers) seems dangerous for companies like Affirm. [1]: https://www.morningstar.com/etfs/arcx/jnk/quote https://www.morningstar.com/etfs/arcx/jnk/quote