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Economy

Tansy_Gold

(18,060 posts)

4. 30-odd years ago, for those who are old enough to remember,

Reply to Warpy (Reply #3)

Tue Jan 10, 2023, 06:08 PM

Jan 2023

I worked for a savings & loan company AFTER the Charles Keating/Lincoln Savings crash. I got to see the paperwork behind some of the loans that took people like Keating down, and took them down hard.

Simplified version:

One guy buys a bunch of properties @ fair market value. Sells one property to his buddy at an inflated price. Now all those other similar properties in that area are valued on paper at that inflated price. Instant millions/billions of collateral to borrow against and buy other sh*t. The problem was that they kinda forgot they had to pay back those loans. The only way to do that was to sell the properties at even more inflated prices, and no one wanted to buy. POP goes the ponzi bubble.

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STOCK MARKET WATCH -- Tuesday, 10 January 2023 [View all] Tansy_Gold Jan 2023 OP

Our upper class is going to find out how ephemeral money is, sooner or later Warpy Jan 2023 #1

It's amazing how little they learn Tansy_Gold Jan 2023 #2

Nope, they amass these ridiculously vast fortunes and think it makes them godlike Warpy Jan 2023 #3

30-odd years ago, for those who are old enough to remember, Tansy_Gold Jan 2023 #4