Repackaging BNPL loans into financial instruments (reminds me of 2008) will make it even worse when this house of cards collapses.
When credit is not priced to risk is when we get distortions that lead to systemic risk as the fall of a single entity like
Since companies that repackage debt and sell it off for suckers to buy there is 0% interest in doing proper credit checks. They just want to generate as much business as they can to make their return on selling the crap to other suckers.
It's 2008 all over again but with consumer credit this time instead of mortgages.
When credit is not priced to risk is when we get distortions that lead to systemic risk as the fall of a single entity like
Since companies that repackage debt and sell it off for suckers to buy there is 0% interest in doing proper credit checks. They just want to generate as much business as they can to make their return on selling the crap to other suckers.
It's 2008 all over again but with consumer credit this time instead of mortgages.