Aren’t these like bad bets and don’t loan sharks just break knees or worse when somebody wimps out on a debt?
Whose portfolios contain this kind of stuff, nobody I know unless it was done secretly.
Bankruptcy is a good option in my book. The bailouts for this kind of phantom “investment” are just payoffs.
Those things should never have been legal in the first place. Chris Cox deserves a lot of scorn for being so lax. All we used to hear about him was what a bright bulb he was. Either he isn’t all that bright, is lazy, or has dubious ethics.
It is likely a lot of these assets are in the portfolios of insurance and annuity companies. If they are unable to honor the policies they have issued, the man on the street will be hit hard. Basically it means we are living in a house of cards which is collapsing and will impact us in ways we cannot yet imagine.