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WeWork's business model had concerning parallels to the risks that led to the 2008 financial crisis. Banks then made risky bets chasing short-term profits while
by starchild3001 3y ago
WeWork's business model had concerning parallels to the risks that led to the 2008 financial crisis. Banks then made risky bets chasing short-term profits while accumulating long-term vulnerabilities. Similarly, WeWork took on expensive, long-term lease obligations relying on an unstable revenue stream from membership fees. This mismatch amplified risk. Like pre-crisis banks, WeWork did not commit outright fraud but showed poor judgment. Its financial mismanagement echoed 2008's problems.