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/ …
Show this thread
-
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.
