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How the hell do you default on a $45 million loan at the same time while buying another property in the same area for $27 million? This is the kind of stuff th
by bsder 3y ago
How the hell do you default on a $45 million loan at the same time while buying another property in the same area for $27 million?
This is the kind of stuff that pisses everybody off. The hoi polloi get raked over the coals for college loans while the haut monde blithely skip right past $40 million in debt.
- garte 3y agoReal estate is the messy underbelly of capitalism. Since only debt (= mortgages) creates money (and growth) you have to cut them some slack. The economy won't work if you're asking too many questions.
- JumpCrisscross 3y ago> Since only debt (= mortgages) creates money Mortgages aren’t only one among many phyla of dollar-denominated debt, they‘re not even the biggest [1][2]. And fiscal spending can create new money without debt. Debt is the monetary channel’s mechanism. [1] https://www.statista.com/statistics/274636/combined-sum-of-all-holders-of-mortgage-debt-outstanding-in-the-us/ https://www.statista.com/statistics/274636/combined-sum-of-a... [2] https://en.m.wikipedia.org/wiki/National_debt_of_the_United_States https://en.m.wikipedia.org/wiki/National_debt_of_the_United_...
- garte 3y agoWouldn't fiscal spending devalue the currency since this money has to be "printed" instead of lent?
- anonuser123456 3y agoThe hoi polloi want their debt paid by the public. Private capital eats the loss here. kind of different.
- JumpCrisscross 3y ago> How the hell do you default on a $45 million loan at the same time while buying another property in the same area for $27 million? Similar to how you can restructure your medical debt, which doesn’t show up on credit reports anymore, while buying a new car on financing. Separate sets of books.
- yieldcrv 3y agodifferent entities. make new entity, sell new bonds with a new proposal on how new people will potentially make money.