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It is Beginning
by Karl Denninger Market-Ticker.org
Alleged “companies” are starting to fail that really are nothing more than cash furnaces existing on the back of “free” money poured in through various “venture” and “investment” funds — all with a singular focus: I gotta make something somewhere, and if I can’t come up with a clean way to sell a product or service I’ll try to flip the table over and monopolize by grabbing a book of business and arbitrage it.
This is, when you get down to it, pretty much what the entire “Short Term Rental” game is about; the arbitrage is in evading commercial building codes, commercial taxes (which are almost always assessed much higher than residential property) and other sorts of fees and expenses that should fall on the operator of said properties (e.g. commercial customers nearly-always pay demand charges for power and often also pay for “apparent power”, otherwise known as “power factor” — while residential customers pay for neither.)
The latest boo-hoo is Convoy which apparently has folded; it was not, as you might think, an actual trucking company.