My company had a client who did those financed schemes where people buy furniture and TVs and stuff and pay in installments. The one bit of information that stuck with me was they expected 50% of customers to default. They went under.
I was about to say how can you run a business like that but it just clicked. The execs were running a scheme on the company itself. The company tricks financially illiterate customers (I sympathise, not denigrating) into debt and bankruptcy, ruining their lives, while the owners pay themselves handsomely and buy cars and mansions running the company into bankruptcy. But they walk away with all their toys paid for by the broken finances of their victims.
The scam is the business plan which says they can still be profitable, so they can borrow cheaply from banks to pay themselves, then they leave just before the company tanks.
Their whole purpose is to psychologically trick people into buying more than they can afford. It only takes elementary level math to see this coming.
My company had a client who did those financed schemes where people buy furniture and TVs and stuff and pay in installments. The one bit of information that stuck with me was they expected 50% of customers to default. They went under.
I was about to say how can you run a business like that but it just clicked. The execs were running a scheme on the company itself. The company tricks financially illiterate customers (I sympathise, not denigrating) into debt and bankruptcy, ruining their lives, while the owners pay themselves handsomely and buy cars and mansions running the company into bankruptcy. But they walk away with all their toys paid for by the broken finances of their victims.
Fucking parasites.
Actually no, that’s not the scam.
The scam is the business plan which says they can still be profitable, so they can borrow cheaply from banks to pay themselves, then they leave just before the company tanks.
The whole economy is a pyramid scheme.
That’s pretty much the same as described above with a marginally earlier exit strategy.
sounds like a variation of a PE firm.