Points Bailout

by Juan
Aug 20, 2020
1 min read
87 words
Table of Contents
During economic crises, the points can be used as interest-free loans of goods and services to distressed companies. Those loans can be paid back with the future productivity of those companies.

For example, a soon-to-be bankrupt airline can stay afloat by getting a deposit of fuel and parts that it needs to maintain its fleet.
- In return, it gives flier miles to its creditors for the value of those resources.
- Instead of an interest rate, a direct markup is assigned.