Re:Airplanes and Accounting Games: The Coming Boeing Collapse?
by Scoundreller on Thursday December 19, 2019 @11:27PM
(#21841711)
More leverage should equal more risk. You shouldn't be saved just because you took too much risk. That's how it's supposed to work!
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Re:Airplanes and Accounting Games: The Coming Boeing Collapse?
by wahern on Thursday December 19, 2019 @11:48PM
(#21841778)
Sure, unless the entire system is at risk of crumbling, then one may not want to cut off their nose to spite their face.
It wasn't just that everybody was leveraged, but the structure of that leverage, the short time periods of rolling over the debts and loans that would result in an extremely rapid negative feedback loop, various accounting rules insensitive to what was necessary for the system to unleverage, etc.