> But that is exactly what happens most of the time when people buy a car. They get a loan from the same company that sells them the car.

No, they don't!

Serious "Citation Needed" here. They get a loan from a financial services company, that is a separate company from the automaker and/or dealership.

The certification and requirements for trading as a credit provider will not be met by neither the auto manufacturer nor the dealership.

> Here's an example that happens every day in the world of housing: banks lend money to house buyers. Then they package the mortgages and sell the resulting mortgage back securities. Then they take the money from the proceeds, and give more loans, and package them and create more mortgage back securities. Seems circular, right?

No, it doesn't! They make out new loans, sure, but they aren't loaning you specifically the proceeds from the sale of your specific mortgage-backed security!

If you happen to get a new loan from the sale of the MBS, it is impossible that only you get that loan, from the sale of an MBS that had only your existing loan.

Seriously, there's laws and regulations around this, and from what you say, with all due respect, it seems that you are unaware of these regulations.[1]

The only reason that these actually-circular deals can go on right now is because OpenAI (and other providers doing similar circular deals) are not publicly traded, and thus there are fewer regulations and even fewer enforcement of what little regulations there are for unlisted companies.

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[1] Why is your handle "credit_guy"? You don't appear to be familiar with the fact that credit providers are heavily regulated in all jurisdictions that we are talking about. I mean, you don't even need to know the specific regulations and certifications necessary, you just need to know things like a dealer cannot be a credit provider too.