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> If X% of people default then you have to increase interest rates to cover the people that default. Your borrowers can always default, even without bankruptcy
by jldugger 8y ago
> If X% of people default then you have to increase interest rates to cover the people that default.
Your borrowers can always default, even without bankruptcy protections. It's a good policy, I assume, but I'm not sure it's strictly speaking, part of the free market dogma.
- akvadrako 8y agoThey can't default because of government interference. I don't think anyone was talking about protections.