Re:Debt is coming to the tech industry
by UncleEntity on Saturday February 08, 2020 @12:40PM
(#22277088)
> Maybe debt, like medicine, should only be allowed to be taken with a prescription?
Isn't it though, really?
The bankers determine your "need" and price it according to the risk of you defaulting -- which would seem to put a kink in TFA's argument since most startups fail, the interest rate would be astronomical if true risks were priced in.
Re:Debt is coming to the tech industry
by Yetanfou on Saturday February 08, 2020 @02:40PM
(#22277883)
Bankers both 'prescribe' as well as sell debt, this is - in theory, at least - different from medicine where the prescriber is not related to the seller.
Isn't it though, really?
The bankers determine your "need" and price it according to the risk of you defaulting -- which would seem to put a kink in TFA's argument since most startups fail, the interest rate would be astronomical if true risks were priced in.