this post was submitted on 27 May 2024
1276 points (98.9% liked)
memes
10484 readers
1593 users here now
Community rules
1. Be civil
No trolling, bigotry or other insulting / annoying behaviour
2. No politics
This is non-politics community. For political memes please go to [email protected]
3. No recent reposts
Check for reposts when posting a meme, you can only repost after 1 month
4. No bots
No bots without the express approval of the mods or the admins
5. No Spam/Ads
No advertisements or spam. This is an instance rule and the only way to live.
Sister communities
- [email protected] : Star Trek memes, chat and shitposts
- [email protected] : Lemmy Shitposts, anything and everything goes.
- [email protected] : Linux themed memes
- [email protected] : for those who love comic stories.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
So you mean that banks are dumb and give away money for free and then just take the losses and repeat thr process?
Actually banks take collateral that is normally not what the private equity firms target and that actually seems to work, but the consequence is that hard assets of the firm (offices, buildings, hardware, cash, etc) are essentially given up
so think of your company as a horse
you sell it to someone for a nice price thinking the other one wants to ride the horse just like you did. but they are actually a butcher and make horse sausage out of it.
Yes and it hurts.
They're not dumb; this is the "moral hazard" we were warned of during the 2008 GFC.