Re:Debt is coming to the tech industry
by woah on Saturday February 08, 2020 @11:09AM
(#22276421)
The 2008 financial crisis was largely created by the perception that the government would take any downside. As long as we don’t have multiple generations of politicians campaigning on a platform of “every family deserves their own SaaS business” and buying up the debt, we’ll be fine.
[ Parent
| on HN ]
Re:Debt is coming to the tech industry
by otterley on Saturday February 08, 2020 @11:23AM
(#22276510)
For those who don't yet believe this, may I kindly recommend reading this (1999): https://www.nytimes.com/1999/09/30/business/fannie-mae-eases...
Re:Debt is coming to the tech industry
by bobthepanda on Saturday February 08, 2020 @01:26PM
(#22277411)
You don't need that many participants in a bubble for it to have systematic impact. You just need enough participants inconveniently placed throughout the economy who stop paying their bills to various people.
Re:Debt is coming to the tech industry
by kortilla on Saturday February 08, 2020 @09:43PM
(#22280048)
No, what made it systemic was the assumption of the government taking the downside risk on people getting mortgages that shouldn’t have.
Massive boring banks won’t get swept up like they did with MBS products otherwise.
Re:Debt is coming to the tech industry
by lotsofpulp on Sunday February 09, 2020 @04:01AM
(#22281153)
> The 2008 financial crisis was largely created by the perception that the government would take any downside.
The government didn’t take the downside for each home loan borrower, but when it came to asset prices, they sure as hell stepped in to save all the equity owners. It just depends how much political power the bailout needers have. Just a few months ago, coal miners in West Virginia got a bailout of their pensions when others have been told to pound sand.