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Wouldn't it be pointless to make something that nobody buy?
by archbung 8y ago
Wouldn't it be pointless to make something that nobody buy?
- r00fus 8y agoClearly high interest rates in the 80s didn't prevent banks from making loans. Lets talk about the inverse of of what you're suggesting - perhaps the lack of ROI on loans is preventing banks from doing what they're supposed to be doing - lending to small businesses.
- JamesBarney 8y agoHow does a low interest rate prevent a bank from making a loan to a small business? A low interest rate is not a federally mandated cap on interest it is an increase in supply which drives down the cost. Which should increase ROI.
- deleted 8y ago[deleted]
- a_d 8y agoWhat you say may be true for almost all the products, unless when the product is 'money' itself. Something worth considering. Easy access to low-cost loans creates the illusion of affordability and exacerbates over-consumption (over-consumption: a general malady afflicting most humans)
- skybrian 8y agoBut the article is arguing the opposite of over-consumption, that there are not enough loans to small business.