By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026That's where Klarna makes its money: people who miss their burrito installment payments. However: if a Klarna borrower goes bankrupt before they've repaid the principle, Klarna *loses* money. 8/ 1301
By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026A successful loan-book of unsecured burrito mortgages depends on the existence of many missed payments and few defaults. "Financial innovation" is often just a project to decrease the risk in risky loans, but *without* decreasing the risk premium you get paid for issuing those loans. 9/ 1414
By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026It's a way to eat your cake and have it too: even though you've reduced the likelihood that you'll have to write off your loan, you still charge the borrower as though that risk is unchanged. 10/ 3322
