Dana El-Kurd

Because they thought it would make them more money.

This is all negative hypothetical money.

It is about to get so much worse, right?

So sticking with leveraging for a second, right?

You might have actually heard of something called a leveraged buyout.

Yeah, so here's the thing.

Leveraged buyouts are something that actually happens in the real world that does fuck you directly, which is a whole bunch of companies that used to be like normalized companies like died because venture capital firms, who by the way are also shadow banks,

Oh.

Did this, right?

They came in.

Technically speaking, they did it through, like, risky bond purchases.

But basically, they did a bunch of high-interest loans, and then they go buy a company.

And then they, like, strip it for parts.

And then they try to raise the stock price of the company.

Yeah, and then they strip it for parts, sell everything, and get out, right?

That's what a leveraged buyout is.

These people are sort of doing kind of a version of that, but, like, they're taking on this debt in order to, like, buy fucking shitty underwater mortgages.

Because they look like they're making so much money.

Oh, it's about to get so much worse.

That doesn't seem like a good idea.