This kind of reminds me of Dick Fuld's railing against "the shorts" in 2008. He was convinced that the market wasn't giving Lehman sufficient credit for its sub-prime portfolio, too. Based on accounts of the crisis, it's what derailed potential mergers and caused the bank to ultimately go under. In a world where 6-month Treasury bills yield 3% and junk bonds yield over 5% (JNK's SEC Yield is 7.22%[1]), I don't get why institutions would continue lending money to Affirm to make short-term loans to sub-prime consumers. Maybe they have a sufficient war-chest to withstand a few dry years. I don't know.

> “In a recession,” he said, “0% is very attractive.”

I'm really curious to see what happens when merchants balk at the fees required to offer those rates. A combination of late payments (disqualifying some existing customers) and higher rates (turning off new customers) seems dangerous for companies like Affirm.

[1]: https://www.morningstar.com/etfs/arcx/jnk/quote