According to a Wall Street Journal report, banks that loaned Elon Musk $13 billion to buy Twitter haven’t been able to sell the debt.
When you owe the bank $100 thats your problem.
When you owe the bank 13 billion dollars, thats the banks problem.
When you then use that money to create a platform of hate, racism, and facism, thats humitys problem.
Who is humity?
It’s like yin/yang except with corn. Humity/hominy.
No, this is Patrick.
Hey Patrick! [winks]
Immanity!
Please add this for real life precisions sake: If the bank is big enough, it’s tax payers problem.
the ability for institutions like that to sell debt has always been wild to me. Like, can i sell my debt? Please?
It’s not money they owe, but money owed to them; backed by some form of contract. Your credit card contract for example.
Person A owes person B money, let’s say $100. Person B sells that debt to Person C for $80.
Person A still owes the same $100, just to a different person.
Person B gets paid now instead of waiting for Person A to pay up, but lost $20 on the deal.
Person C invested $80, hopefully gets paid the full $100, not having to chase down a delinquent debtor, and profits $20 out of the deal.
Nobody wants to be person C when it comes to the Debt Twitter owes.
If you had someone that owed you money (or anything else really), you could sell that debt, assuming you can find a buyer for it. Banks just do this on a much larger scale than $100 at a time.
Another example are collection agencies:
- Frenchie owes Artie $50,000, but he cannot collect.
- Tony pays Artie $6,000 to buy the debt.
- Then Tony visits Frenchie and he gets the $50,000 with a bit of gabagool
Free Cannoli
Yes you can sell your debt as a consumer. People do it all of the time.
However, the terminology is different.
We call it “taking out a loan”.
Say you have a credit card debit and you take out a new card because it has a free credit transfer offer going on. You’re selling your debt right there.
Another scenario is you have a loan and refinance it using a new loan.
they could foreclosure it and sell it for 1/3 what Elon paid to get their money back
That’s assuming that anyone would pay even that much for the burnt-out husk of Twitter.
