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This may be a case of "there's a business there, but it's not this business". You can always take a sensible business and turn it into selling $1 for $0.75 and go deeper and deeper into debt while buying market share, while at the same time making it impossible for anyone else who wants to actually make money to compete.

(I have no idea how to turn this into any sort of law but companies really shouldn't be allowed to just dive into debt, conquer a market via selling dollar bills for 75 cents, then collapse into a puff of compounded interest and massive losses and destroy the entire segment they are in as they collapse. I suppose just not having interest rates at effectively 0 will likely do the trick eventually.)




It almost doesn't need to be a law, because the end of the business is usually a big enough consequence to convince most people to not do it.

Otoh, it does kind or suck when it seems to destroy the whole segment, as sometimes happens.


The problem solves itself until venture capital arrives and decides that pouring $2 billion into a market that doesn’t make economic sense is the sane thing to do just in case one day it becomes a $200 billion market.


It doesn't need to be a law, if the government steps out of the way the natural laws will shut the business down. But if the government bails them out then I guess we don't believe in natural laws.




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