TL;DR

The “burrito payments” meme is a canary in the coal mine, signaling another potential financial crisis driven by repackaged consumer debt. History doesn’t repeat, but it often rhymes.

Story

The “burrito payments” meme highlights a grim reality: our financial system is a ticking time bomb, primed to explode just like in 2008. Only this time, instead of subprime mortgages, it’s repackaged consumer debt, like “buy now, pay later” for burritos. It’s a house of cards built on easy credit and inflated valuations.

Think of it like this: someone takes a bunch of small burrito loans, bundles them together, and sells them as a “Burrito Bond” to investors. Sounds ridiculous, right? But it’s not far off from what happened with mortgage-backed securities before the last crash.‣ Mortgage-backed securities: Bundles of home loans sold to investors. When people can’t afford their burritos (or their houses), the whole system collapses.

The human impact? Devastating. John, a recent college grad, thought he was being smart by using “buy now, pay later” for his daily burrito fix. Now he’s drowning in debt, his credit score in the toilet. Multiply John’s story by millions, and you get a glimpse of the potential fallout.

This isn’t just about burritos; it’s about the normalization of debt and the illusion of affordability. Like the Enron scandal, it’s a symptom of a system rotten to the core. ‣ Enron scandal: A massive accounting fraud that led to the collapse of a major energy company. Remember, if it sounds too good to be true, it probably is.

Advice

Avoid “buy now, pay later” schemes like the plague. They’re debt traps disguised as convenience. Live within your means, even if it means fewer burritos.

Source

https://www.reddit.com/r/wallstreetbets/comments/1jih0ia/anytime_i_hear_the_words_burrito_payments/