Same thing with Enron. They spun their money losing projects off into new businesses that were capitalized from Enron stock (which kept going up) and so somehow all of these spin offs were also solvent but only because of the value of the stock they had, which only went up because Enron was not showing the losses they would have shown if not for their increasing stock.
It's always the same idea, people just find different contortions to make it seem legit this time.
Yeah, feels similar to the various crypto perpetual motion machine scams of "we'll use our own token as capital, but the token only has value because people believe we have capital"...
It's always the same idea, people just find different contortions to make it seem legit this time.