I've spoken to bankers about this. All the borrowers gotta do is say "we can keep making the interest payments if you let us and we all make money this year".
It's in no ones interest to force a default when credit is loose. Think about it. If you manage a book of loans and the choice is to A) admit you fucked up and lose your firm a ton of money or B) help your borrower renew and keep making money, what are you going to do? The answer is obvious.
There's gonna be the occasional really bad ones like Tricolor but most just want an extension.
Hmmm I have money to invest. Should I pick:
a) stocks backed by companies with real intrinsic value
b) commodoties backed by real world supply and demand needs
c) fake internet money backed by nothing and is actually useless
Hmmm yes I'll pick c I am very smart
AI is going to weigh the bags to make sure items aren’t missing? Lol this has to be one of the worst AI applications I’ve ever heard.
Everything you say was even more true this time one year ago yet none of it has played out well b
I looked into this more, they’re P/B is great .06. It does seem considering their assets that they are fair value in 30’s. I think he’ll make some money