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You're right of course, but I wonder if the status quo were to suddenly change so that banks are liable, would credit suddenly restrict and cause a recession or
by dangero 7y ago
You're right of course, but I wonder if the status quo were to suddenly change so that banks are liable, would credit suddenly restrict and cause a recession or worse?
- iamnotacrook 7y agoNo, because banks make a lot from credit so they'll find a way to issue it and protect themselves.
- pwg 7y agoMore likely, the banks would respond by being more vigilant at verifying the identity documents as valid before accepting the crooks word for it. So it might take a day to open an account (while the bank does the verification they should have done anyway), instead of five minutes, but the financial world would continue on as normal. And, this would shift the work onto the entity best suited to performing the work instead of forcing the work onto the victim.
- deleted 7y ago[deleted]
- Wowfunhappy 7y agoWithin the context of cortesoft's sibling comment: > I mean, they ARE liable in the sense that they will have to eat the loss (the money they loaned out won't be repaid). The problem is that for them, this is just a cost of doing business, and that cost is already priced into interest rates... the cost to the person who has to prove it wasn't them has no return and is only negative What would "the status quo [changing] so that the banks are liable" look like?