But don't worry, you will be at moderate risk of the car breaking down before 10,000 miles and you can't fix the part because it has been deliberately engineered so that mechanics can't fix it and it has to be replaced.

https://xcancel.com/unusual_whales/status/1987985187918192870

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[–] InevitableSwing@hexbear.net 14 points 2 days ago (6 children)

If you're in the mood to read a crazy comment.

Horseshoe theory. Here’s where this logically leads: payment in kind (PIK) mortgages and car loans that are securitized and then sold to a government sponsored entity (GSE) that then sells the low risk liquid securities to institutional investors who are required to hold low risk but long duration securities and they are the ultimate bag holders as long duration fixed income is toxic as the Federal Reserve inevitably monetizes the Federal debts that would otherwise be unpayable.

This is, of course, equivalent to the government providing free autos and housing.

[–] dastanktal@hexbear.net 23 points 2 days ago (3 children)

The more I read comments like this, the more I'm thoroughly convinced that people just throw economic terms as gobbledyremoved together to try and say something smart that makes no sense.

It's like when people want to seem smart about computers and start throwing random terms together that they don't understand.

[–] Kefla@hexbear.net 15 points 2 days ago

Econobabble glorp

[–] mrfugu@hexbear.net 7 points 2 days ago

bro just download more RAM to up your bandwidth

[–] InevitableSwing@hexbear.net 5 points 2 days ago

I only go to Twitter via posts here so I'm hardly ever there.

throw economic terms

I wonder if there a large amount of "I am very smart!" Twitter posts on all sorts of topics that are like that.

[–] Posadas@hexbear.net 21 points 2 days ago

[–] indorri@hexbear.net 3 points 2 days ago* (last edited 2 days ago)

payment in kind (PIK) mortgages

Gonna dig up my front porch and send it to my bank for my interest payment, dawg!

Edit: PIK Loans are an actual thing, it just means that you add the interest payment onto the existing debt rather than pay it over time. Which I'm sure would be great for a mortgage and not at all portend a crisis big enough to send us back to the stone age.

[–] Carl@hexbear.net 4 points 2 days ago

I need an aspirin after reading that

[–] CompactFlax@discuss.tchncs.de 5 points 2 days ago* (last edited 2 days ago)

Dunning-kreuger

[–] techpeakedin1991@lemmy.ml 2 points 2 days ago

So the debts get sold around a whole bunch like a hot potato (for some reason) until it eventually ends up at these 'institutional investors' (who? The federal reserve I guess?), because these 'institutional investors' have to have low risk long duration debts (probably true?). They're the ones who have to pay for the debts because long duration fixed income (which is the same as low risk long duration I guess?) is 'toxic' (even though they're apparently required to have them). They're toxic as (can't tell if 'as' here means because or while?) the federal reserve 'monetizes' the debts (forgive the debts? pay the debt's instead of the debtors? sell the debts to someone?) because the debts are unpayable.

I think he means the government's going to buy the debts then forgive them? Because they'll totally do that, just look at student loans, right?

Also this is communism btw