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> Just need to make sure you don't end up with financers/banks/rating agencies colluding to bundle multiple companies together and sell tranches of the debt (all with a phony A+ rating) to investors/funds...

I imagine that's sarcastic, because that looks a lot like the description of a VC...



Close, but loans have a fixed return where vc money has much more opportunity making it potentially with the higher risk.


The largest difference should be that VCs are transparent about their risks. I don't think any investor expects not to lose nearly all their investment in the case of a bubble popping, what is different from people buying home loans.

But it was a description of VCs.




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