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The increase in value of the companies outweighs the transactional costs and then you borrow against the value of the company and make new circular deals. It works really well for a very long time and then at some point it doesn’t. The trick of the game is to get big corps involved and key decision makers so that the government bails out everyone in the end.

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> The trick of the game is to get big corps involved and key decision makers so that the government bails out everyone in the end.

This is bad. We should not shrug our shoulders and go "Oh ho, this is how the game is played" as though we can substitute cynicism for wisdom. We should say "this is bad, this is a moral hazard, and we should imprison and impoverish those who keep trying it".

Or we'll get more.

You cannot imprison the guilty parties, they write the laws, and under the law you taking any action is criminal and will likely be classified as terrorism or political violence. They can however arrest you for holding a sign at a protest of merely for existing. These days someone just need to yell “I think it’s an immigrant” and true or not, your rights to due process disappear. All the while the scammers get pardoned by the president because they were too profitable in their scams to fail.

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