1) Establish a new financial business model that avoids the regulations and consumer protection laws traditional banks and funds are required to follow. Simply declared you are in a different category of business during a period of loose regulation. They'll let you.
2) Raise tens of millions (billions) of investor dollars on the promise that you can earn higher returns by avoiding all that bureaucracy.
3) Make lots and lots of loans without doing some key expensive step like verifying income, checking credit, or assessing collateral. Declare the debt top-grade.
4) Loans such as these typically perform well for the first six months to year, "proving" your business concept. More investor dollars arrive.
5) Sell out and retire a multi-millionaire as the loans start defaulting at higher-than-expected rates.
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For the preceding process, plug in:
-peer to peer lending (see
https://forum.mrmoneymustache.com/investor-alley/lending-club-time-to-panic/ for the latest)
-circa 2006-2007 "liar loans" on mortgages
-subprime credit a few years ago
-Asian debt in the 1990's
-S&L debt in the 1980's
-eREITs???