A new partnership between DoorDash and Klarna has sparked a heated debate on social media about the potential risks of a “burrito loan” – a concept that could be linked to the 2008 Global Financial Crisis. The idea involves taking out four interest-free installments to pay for food delivery, raising concerns among financial experts.
Satirical posts referencing the 2015 film “The Big Short,” which explored the subprime mortgage crisis, have fueled the discussion. Some users compared the burrito loan concept to collateralized debt obligations (CDOs), which were at the center of the Global Financial Crisis.
Personal finance expert Dave Ramsey also weighed in on the topic, addressing the concerns surrounding the buy now, pay later model. The debate has highlighted the potential risks and consequences of such a financial product, sparking a wider conversation about consumer spending and debt management.
Source: https://www.investopedia.com/social-media-users-just-cant-get-enough-of-collateralized-burrito-obligations-11701143