Re:Ask HN: What skills will be useful during an upcoming rec...
by JumpCrisscross on Sunday March 22, 2020 @02:07PM
(#22657082)
> This skill allows you to purchase distressed businesses and properties for pennies on the dollar
Banks aren’t net purchasers of assets in downturns. (If anything, they tend to shed risk-weighted assets.)
Non-bank financial firms, who have access to cheap financing, but NOT to Fed funding, are the asset accumulators. They go into crises with cash or credit lines. (And tend to be net financiers to banks in crises. Banks go into crises levered. If you depend on bank financing in a crisis, you’re screwed.)
Banks aren’t net purchasers of assets in downturns. (If anything, they tend to shed risk-weighted assets.)
Non-bank financial firms, who have access to cheap financing, but NOT to Fed funding, are the asset accumulators. They go into crises with cash or credit lines. (And tend to be net financiers to banks in crises. Banks go into crises levered. If you depend on bank financing in a crisis, you’re screwed.)