3 ms·

And in the corporate equivalent of a malignant tumor, a leveraged buyout can suck all of a company’s resources before destroying it in bankruptcy. See: Toys R U

• smsm42 4y ago
  The governmental strategy of cheap overbundant credit means that it is a profitable strategy to borrow a ton of money, but an asset, loot it and then declare a bankruptcy. This would be detrimental for a company if the credit was tight and expensive, because nobody would give them money again or if they do, the costs would be so high that the loot wouldn't be worth the effort. But since the credit is made cheap and virtually infinitely abundant, if somebody doesn't give them the credit, somebody else will.