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Woah there... govt subsidizes what? This isn't about subsidies (except for loan guarantees), it's about unsecured credit and debt that can't be discharged in ba
by kurthr 8y ago
Woah there... govt subsidizes what? This isn't about subsidies (except for loan guarantees), it's about unsecured credit and debt that can't be discharged in bankruptcy. That (like credit card spending, 8 year car loans, and payday lending) is a recipe for rising prices and high eventual bankruptcy rstes, but it's not govt subsidy. It is regulatory capture.
- maxerickson 8y agoThe government backing a huge portion of the loans and creating special treatment for the loans are both, ya know, subsidies. They are slightly indirect.
- kurthr 8y agoYes, that is why I called out loan guarantees. Regulatory capture (special treatment) on the other hand, is not subsidy any more than granting a patent/trademark is a subsidy... it's regulatory capture (the opposite of effective regulation). Corporations don't get to blame the govt for the rules that industry paid for... see what you made me do!