Mildly Infuriating
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Wikipedia should counter by offering Elon $4 to go towards paying off his massive hole from buying Twitter. 😂
He doesn't need to pay. Twitter is already worth less than the debt, if he continues to break that company apart there'll he no reason to even consider paying the debt off.
The debt is a tax writeoff. The entire company is a tax writeoff for him and his clique.
This will allow them to gain billions more without spending a cent in taxes.
Tell me you don’t understand taxes without telling me you don’t understand taxes.
https://youtu.be/XEL65gywwHQ?si=KcjWj3xXtg2un4h7
Tell me you don't understand that its exactly what Trump did.
That’s not how debt works, he almost certainly pledged assets and a personal guarantee against it. This is known as collateral.
The banks take the collateral when you stop paying.
The way I understood it is that he didn't get a loan to buy the company, but had a bank itself buy Twitter as a loan, so Twitter itself is the collateral. That's what I did when I bought my apartment: a bank bought it from the constructor and let me live in it while slowly buying it from them over hundreds of installments. If I stopped paying the bank would kick me out and sell the apartment to someone else.
That isn’t quite right. If you stopped paying the bank would kick you out and sell the apartment to someone else, but if they get less than you owe them for it, they will also send you a bill for the remainder.
And then sue you to get that money.
Interestingly, if they get more than you owe them for it, they will cut you a check for the difference.
But you are actually wrong about how and what the order of operations is.
You are buying the house, the lender (bank) writes the check directly to the seller, and you sign a mortgage agreement for that much with the bank and they put a lien on your house. The bank does not own the house, you do. The bank owns a promissory note from you, backed by your personal wealth and credit and the value of the house (that they have a lien on).
In the case of Twitter, yes, Twitter itself is part of the collateral, but so was Elon musks personal wealth and Tesla shares.
I forgot to mention I'm not American so some things might be different in my case, but you're right in general.
If you tear down the apartment, you cannot stop paying with the excuse that now it worths nothing. You'd still need to pay the original value