Avoiding losses, or preventing people from realizing they've already suffered losses, is crucial. Therefore, with each new round of venture capital, they strive to create the illusion of rising valuations, desperately trying to avoid a down round. Consequently, Wall Street brokers constantly use new debt to repay old debt, or layer upon layer of debt and transfer it to distant, uninformed third parties. Otherwise, once a down round occurs, or a debt default occurs, and people are awakened from the illusion, it will be difficult to reverse the situation.
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