1) suppliers are getting wedged by large purchasers on 30 moving to 60 or 90 day terms. It's killing them.

2) Greensill decided to fund buying the debt, and offering the supplier a yield for immediate payment.

3) the purchasers loved it. Who cares what suppliers think being made to accept a 95% payment. Some of them are glad to get paid at all. Who'd be a farmer.

4) Greensill packaged the debt and sold it as a derivative.

5) covid happens, and the purchasers want to renege.

6) Greensill can't cover the margins, and the value of the derivative tanks.

This has to be (for me) a just desserts story: the real problem is the major league purchasers screwing suppliers. Normally, we talk about dis-intermediation as a process to remove friction and costs. Greensill intruded into something and so was re-intermediating and extracting rent from suppliers.

No matter with or without Greensill, suppliers are being ripped off. And, in the end, so are we the people being sold the wheat and milk and cheese.

Good riddance. This should never have been turned into a derivative and monopoly purchaser power should be defeated.

Suppliers in agribusiness need to go back to farmer owned cooperative models and get realistic pricing and terms back on the table.

Or, interest for the 90 days.