Interesting. Rent default domino effect.https://www.washingtonpost.com/business/2020/06/03/next-big-problem-businesses-cant-or-wont-pay-their-rent-its-setting-off-dangerous-chain-reaction/ …
-
-
If I owe you $100, and can't pay, you and I can negotiate and maybe I give you $50 on schedule, and $50 later at slightly lower interest. But if you sell the debt as 100 $1 loans to 100 anonymous people on a market, that flexibility is lost because I can't negotiate with them.
Show this thread -
Basically consequences of distress and defaults should never be automated because they tend to be complex contingencies requiring human responses. Automating AND distributing them is double jeopardy. Sudden automated repo trigger on 1 missed payment, flash crash etc.
Show this thread
End of conversation
New conversation -
-
-
Not sure what you mean by that. There's an entire distressed debt industry. Now, the implicit state guarantee of residential mortgages is a whole other problem...
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
This is a good point. Also the first-order effect of increasing credit available for purchase of positional goods does nothing but inflate the value of said positional goods.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.