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That's not entirely accurate. The easy way to make a crazy amount of money is to buy a well-credited company, sell / mortgage anything of value, ramp up user fe
by radley 2y ago
That's not entirely accurate. The easy way to make a crazy amount of money is to buy a well-credited company, sell / mortgage anything of value, ramp up user fees and debt over a short period (3-5 years), and then cast aside the husk via bankruptcy.
- mattmaroon 2y agoI’m curious how the people who believe this is what happens think the LBO firms keep getting credit. The banks that end up holding the bag in this imaginary bankruptcy scenario are just idiots who keep falling for it over and over again? Like Charlie Brown with the football? If this is a thing that they all do all the time and the creditors always lose, how do the creditors not learn? Or is it possible that that’s just a story based on events that happened a few times and were extrapolated to be believed to be the norm?