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But the bank is worth $10 billion less.
Spend lots
Go into debt
Buy successful company
Load it with your debt
File (it) for bankruptcy
Make out like a banditRinse, repeat
It’s this what America is trying to do?
Buy up everything and then default on our loans? Yup. If they aren’t trying, their incompetence is actually pretty impressive.
Man, no trying, it’s past and present tense now, doing and successfully did.
It’s not actually ridiculous in principle.
Let’s say I start out owning a bank with ten billion in assets, and the bank’s value comes entirely from its assets so it’s worth ten billion.
The bank loans its ten billion to you, and you pay me those ten billion for the bank. Now I have ten billion in cash instead of a bank that was worth ten billion, and you have a bank worth ten billion to which you owe ten billion. No one’s net worth has changed.
You default on your loan to your own bank. Now the bank is worthless (its worth came entirely from the loan) and you have no debt, so your net worth still hasn’t changed. Effectively nothing has happened.
But now you can lobby the government to bail out your bank using tax money.
nothing has happened
Right, which is why it’s not some hero-swaggers-triumphantly maneuver. That’s the ridiculous part.
Is capitalism real?!?!n1?
Except that there is also value from other clients and from the brand, which is then helping you to actually earn money
Loan was not approved. What now?
Set up a shell company. Set up a trust somewhere with no capital gain tax. Shift ownership of the shell to the trust. As the shell, come to an agreement in principal with the bank to buy it. Use this as colateral to raise a loan from the bank for the purchase amount. Transfer the debt to the bank as part of the merger with the shell company. The bank now basically owes itself to itself. Sell the combined company from the trust, thus avoiding capital gain tax.
Set the bank on fire and try the next one
Brute force loan application: Keep trying random identities until one goes through.
pulls out minigun from payday 2
loan approved
😎
I feel like the closest real thing is a leveraged buyout
step 1: buy a money factory
step 2: profit
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aquire money trough established capitalist social network
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Buy a successful small businesses with employees included.
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Run it trough the ground to extract all profit and value of to recover the money used to buy it
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You barely made money on this but you are “famous company” and they where just an obstacle for your competing products who are making more now.
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Repeat
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Ahem, you skipped a few steps but ya your close to it. https://youtu.be/x9P-pYGu_ws
Step 5: Profit
Noncredible economics
