Today the world of X has been alight with spicy memes regarding the incredible news that Klarna, the Buy Now, Pay Later (BNPL) company, has begun offering their services to DoorDash, America’s favourite way to hail a private car for your burrito.
My personal favourites stem from a terrific film called Margin Call, which charts the 48 hours leading up to the 2008 financial crisis. If you haven’t seen it, I highly recommend it. It’s got a terrific cast, and even this scene is worth watching for the acting.
Is this the sign of a bubble? Are we going to see people in the future default over a pizza they ordered a few years ago while hungover? Is this really any different than buying with a credit card?
All valid questions, although the worst case scenario (2008 style crash due to Sythetic Burrito Backed Securities collapsing) seems far fetched. I mean, it’s your burrito, who the hell doesn’t pay for their burrito??
That said, it IS one step closer to what I think COULD be financial Armageddon: which is if these BNPL firms get their claws into sports gambling. That feels unlikely, because the likelihood of wanton destruction seems inevitable were it to ahead.
For now enjoy the memes, but please, do not finance a pizza.
