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this post was submitted on 03 Jan 2024
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more like, confidence in human greed.
Banks don't cut people breaks just because they're famous. keep in mind, this guy's net assets are not 1.2 billion- that's his debt. He's over extended and they're taking them up. long-time business partners might get less scrutiny on the inflated values, but this guy? naw. he took out massive loans on proprieties or whatever, they'll be taking whatever collateral he used, and whatever other assets are associated.
if you'll ask a question?
But if you're referring to the 2007-08 financial crisis caused by MBS going tits up, you'll have to do better than that, since MBS's were packaged loans to lots of individuals. Each individual loan was risky because of the sub-prime market being largely unregulated at the time, however, it was assumed the risks were acceptable because the loans that didn't go up were profitable to offset them.
The problem with that, of course, was that the entire industry kept ramping up sub-prime loans building up a slow, but increasingly high risk of total collapse on the value. but this is an entirely different situation than giving one guy a billion dollar in loans. And you'll note, that the MBS's were backed with collateral in the form of houses that they subsequently foreclosed on. (and later sold for much more in profit, while also getting bailed out by the government.)
You got two explainations. 1 the banks didn't know what was going to happen, despite all the obvious signs, in which case they have no idea what they are doing 2 they knew exactly what they were doing and engineered a crisis for a bailout and market dominance.
So do you want your friends to be fucking morons or fucked up?
or do you want to stop confusing issues here?
'07-08 crisis is a fundamentally different scenario that built over time. The toxic assets totaled something like 1 trillion; they were built over time, and the problem rose when home values stopped going up. let me compare the orders of magnitude on the debt that caused that crisis vs this:
Do you see the difference now? It's a nice whataboutism, but it's fundamentally irrelevant. the only thing that's going to get fucked is Kiyoski, and the people who work for him. The difference between a billion and a trillion is... about a trillion. more preciesly, .1%.
Gotcha they fucked up and don't know what they are doing.