4 ms·
I'm not sure what you're point is here. There is no magical world 2008 or not, never do you see 100% of people paying back their loans. Conservatively managing
by lugg 11y ago
I'm not sure what you're point is here. There is no magical world 2008 or not, never do you see 100% of people paying back their loans.
Conservatively managing loans means minimising lending to people likely to default, and leveraging enough to cover those who do. You do not need 100% of people to pay back their loans to turn a profit, charging interest is what makes this manageable and guarantees a profit.
- meric 11y agoIf you conservatively run a consulting business, you can 'guarantee' a profit too.
- 3pt14159 11y agoWhile I agree that bankers hold too much influence in politics, this line of thinking is obviously incorrect. First, bankers have margins and compete like any other entity. If they are too conservative they will not get enough borrowers to cover the cost of their staff and facilities. Furthermore, to just earn a profit is not enough, a banker needs to earn a profit consummate with its market capitalization. Most banks are publicly traded, after all.
- rtpg 11y agoWell, there's no guarantee of profit. You cannot predict 100% of the time who will pay you back. It's pedantic, but it means there is _no_ guarantee of profit Of course, you can get pretty close to 100%, but it's a balance of risk and reward, like most things.