3 ms·
Ah, the magic of loaned funds with little or no demands tied to it. And you wonder why real estate prices are so high? It's largely the same principle, except t
by kebman 4y ago
Ah, the magic of loaned funds with little or no demands tied to it. And you wonder why real estate prices are so high? It's largely the same principle, except the regulation is way, wayyy tighter. But in sum, the effect it has on markets is unquestionable.
- mi_lk 4y ago> loaned funds with little or no demands tied to it What does it mean for funds tying to demands?
- kebman 4y agoIt means that the contract you enter when you loan money has limitations to what you can use said funds for, and how or what it's secured with (including interest). It would seem that the creditors of Bankman-Fried gave him quite liberal limits, if it wasn't simply the byzantine structure of his many, many straw companies that made it extremely hard to understand what the money was ever used for, so much so that he may or may not have lost track himself.