Re:Who Pays the Price for Selling $10 Bills for $5?
by nateburke on Friday April 05, 2019 @11:29AM
(#19583482)
Remember that we've been here before: Groupon actually ended up BEING a straight-up ponzi scheme that is now worth a small % of what it IPO'd for as a conglomerate of all of its competitors (LivingSocial, etc.).
And do not forget that some % of folks driving for Lyft and Uber are doing so in cars that are financed with subprime debt.
$1-1.5 T in auto debt is not 2008 subprime mortgage debt, but it's important to remember that a real tie-in to the publicly-chartered banking system exists here beyond whatever LPs put into VC funds.
How I see this playing out, post-ipos:
Wall Street will demand profits, Uber/Lyft will raise fares because it's the only thing they can do, fewer riders will use the apps, causing fewer drivers to drive -- they will have to walk away from their car loans.
And do not forget that some % of folks driving for Lyft and Uber are doing so in cars that are financed with subprime debt.
https://usa.streetsblog.org/2019/02/13/americas-car-centric-...
$1-1.5 T in auto debt is not 2008 subprime mortgage debt, but it's important to remember that a real tie-in to the publicly-chartered banking system exists here beyond whatever LPs put into VC funds.
How I see this playing out, post-ipos:
Wall Street will demand profits, Uber/Lyft will raise fares because it's the only thing they can do, fewer riders will use the apps, causing fewer drivers to drive -- they will have to walk away from their car loans.
GMAC will need to be bailed out again.