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If you sell one building at a large discount to pay your bills, the market is likely to rapidly devalue the rest of your buildings
by jncfhnb 3y ago
If you sell one building at a large discount to pay your bills, the market is likely to rapidly devalue the rest of your buildings
- AnthonyMouse 3y agoThat's assuming your sale is the only data they have about the value of your assets. But real estate sales happen all the time. Now, if everybody is selling every building at a large discount, that's a housing crash, and highly-leveraged real estate companies are toast. But that should only happen if there is a real estate bubble, in which case a market correction is ultimately necessary and the entities that buy at the peak of the market are supposed to lose their shirts. What you want to do in that case is not to save them. They're done. What you want is to prevent a cascading failure into the rest of the economy.
- jncfhnb 3y agoThere is a real estate bubble, and everyone, especially government entities, are deeply invested.