[atq2119]

Yeah, it's pretty clear that the first two loans are productive. The third one not so much, and I think that's the original point about asset inflation creeping in at some point.

Though it's obviously a matter of degree and context. If we're really talking about Billies and Charlies here, chances are that the last loan really is beneficial in terms of how it allows capital allocation to change. Perhaps Billie rented out units and just can't continue with that business anymore for some reason, but Charlie can.

If however we're talking about institutional investors or the very rich who will anyway employ somebody else to do the productive work, then the case for the loan is much weaker.

[sokoloff]

Ok. I read your previous as suggesting that even Billie’s loan was unproductive or Alex was doing something wrong. (Alex has built a spec property and intends to leave it empty until sale as they’re in the construction business.)