In their rush to appear profitable, they take out high-interest loans to pay for luxury items required for the next deal. When the deal falls through, they borrow from a second lender to pay the first. It is a debt spiral dressed in Balenciaga.
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Understanding is the difference between a winning trade and a trap. This refers to the risk of trading against "informed" counterparties (large institutions). In their rush to appear profitable, they take
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