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I think you might misunderstand your analogy. If you owe the bank two billion dollars it's their problem because a missing 2 billion dollars is large enough to
by 2OEH8eoCRo0 2y ago
I think you might misunderstand your analogy. If you owe the bank two billion dollars it's their problem because a missing 2 billion dollars is large enough to be painful for the bank.
- 7952 2y agoAnd the bank stands to lose far more money than the company they have lent to who will just fold. In renewable energy it is actually common for the funding institutions to be paid a cut of the profits and to have no recourse to repossess assets. They take all the risk because they provide all the funding. The job of the actual developer is to provide a project worth funding.
- BuckYeah 2y agoI think you and the original metaphor maker are still not seeing the failure of the analogy. The bank with a $2B default gets bailed out by taxpayers and the billion dollar borrower gets bailed out through bankruptcy court—also the taxpayer. The person borrowing $2 screws themselves, and the same person borrowing $2 gets to bail out the bank and billion dollar borrowers.