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A comment on Zillow to stop flipping homes, loses more than $550M, lays off 25% of staff. Parent comment

Re:Zillow to stop flipping homes, loses more than $550M, lay... by HWR_14 on Tuesday November 02, 2021 @08:30PM (#29089555)
The models don't have to predict a slowdown. They just have to account for the total amount of risk Zillow is assuming.
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Re:Zillow to stop flipping homes, loses more than $550M, lay... by beamatronic on Wednesday November 03, 2021 @01:29PM (#29097756)
Which should really just boil down to carrying costs vs future expected profits
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Re:Zillow to stop flipping homes, loses more than $550M, lay... by HWR_14 on Wednesday November 03, 2021 @06:57PM (#29101583)
Their risk model should really account for the possibility that housing prices go down. I mean, there were famously in 2008 banking firms whose models didn't even allow for that.
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