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If lenders truly had no skin in the game then loans would be nearly interest free. There's a testable hypothesis there: did rates for student loans go up much
by HarryHirsch 10y ago
If lenders truly had no skin in the game then loans would be nearly interest free.
There's a testable hypothesis there: did rates for student loans go up much when they were made non-dischargeable? I'm too lazy to check.
- someguydave 10y agoIt's a good point. I failed to caveat that my prediction might not be true: - in a situation where other "risk-free" investments are more profitable - in a situation where the supply of money lent is regulated or controlled enough to fail to bring down rates.