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> but in the long term it will break the cycle of indebtedness to the rich, if we take efforts to make sure debt risk is always assumed by the lender. I can se
by yeukhon 9y ago
> but in the long term it will break the cycle of indebtedness to the rich, if we take efforts to make sure debt risk is always assumed by the lender.
I can see how that works, but in practice, lenders always sell their debts. My mortgage via Citi is sold, even though my interest rate and my payment remain unchanged. Then comes the government which will always provide some bailout, so what does "assume risk" even mean when in the end risk is going to get swallowed by another lender anyway?
- dnautics 9y agoWell as long as the Government doesn't bail out, then someone assumes the risk, and along the way there are write-downs, and the purchaser of the debt now holds the basket and assumes the old risk. So basically I'm saying "as long as government doesn't bail out".