Quote:
Originally Posted by raulus
Does anyone feel like a run on the vault would have the same impact as a run on a bank?
Since the business model is so different, it seems like the impact would be different. I mean, it would definitely reduce their business with people selling from the vault. And it would reduce their ability to basically move stuff from one owner to another within the vault while taking a commission without really doing much. But it’s not like they would run out of cards to give back to their depositors because they’ve loaned them all out.
Plus I suspect that for anyone with a loan against their cards, to get their cards back, they’d need to repay the loan first. So if PWCC is hurting for cash, getting those loans back might actually help their short term cash position.
I am intrigued by the inference in the video clip that loans would be made up to 100% of the sales price. Everything in their marketing materials they’ve sent to me suggests that 40% was the limit. But maybe I’m not eligible for their best loan terms.
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Lending 100 percent of the value of the collateral or anything close would be incredibly stupid, I don't believe it.
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