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That's not really so. If you have a bunch of bad luck in one month, you sometimes need a line of credit to get to the next. Did you have a flat tire? Did the ba
by xhkkffbf 7y ago
That's not really so. If you have a bunch of bad luck in one month, you sometimes need a line of credit to get to the next. Did you have a flat tire? Did the baby need three trips to the doctor because of croup?
Banks exist to make our life better when we need extra spending cash. If we ban lending to the poor than it will be one more thing that only the rich will have.
I agree that the lending rates are insanely high, but that's largely because of defaults. The rates for secured goods (car, house) are insanely low, even when the defaults are taken into account. Car loans from credit unions are below 2% because they're secured.
The real problem is that the easiest way to cure defaults is to start saying "No" more often. But no one likes to be told "no" and that's unpopular too.
- boring_twenties 7y agoUh, car loans are below 2% only for people like you and me with excellent credit scores. "The other half" can only get financing directly from shady used car lots, where good luck even getting them to tell you the interest rate (or the purchase price) -- they focus instead on the monthly payment (and try to downplay the fact that it's for 72 months).
- xhkkffbf 7y agoYes, they are a higher for people with bad credit, but they are still reasonable compared to unsecured loans. And that was my point, not this social justice diversion. And, yes, the rates do go up for people with a bad credit history. You can call them "the other half" but the simplest way for you to demonstrate your devotion to helping them is to quit writing comments and go lend your retirement savings to them. You seem to imply the banks are just overcharging out of some evil motive. Now is your chance to prove how wrong they are by cashing out your trust fund (you sound like a trustafarian) and loaning it out at "fair" rates. Just remember that every default by "the other half" destroys hard earned capital of retirees. The low rates really hurt the older savers. They're part of the "other half" too.
- faissaloo 7y ago>you sometimes need a line of credit to get to the next Not in a society that looks after it's people. >Did you have a flat tire? Did the baby need three trips to the doctor because of croup? You shouldn't be paying for healthcare, guaranteed minimum income and social connections should suffice for the other stuff. >If we ban lending to the poor than it will be one more thing that only the rich will have. We shouldn't ban lending to the poor, we should ban lending with interest period.
- tuesdayrain 7y ago> We shouldn't ban lending to the poor, we should ban lending with interest period. This is the worst opinion I have ever read on HN.
- faissaloo 7y agoI actually think it's one of my better opinions.
- vinniejames 7y agoThis is a common belief of the Muslim religion. Interest is haram https://www.coindesk.com/sharia-goldbugs-how-isis-created-a-currency-for-world-domination https://www.coindesk.com/sharia-goldbugs-how-isis-created-a-...
- foogazi 7y agoWe already banned interest, it’s even criticized in the Bible We brought it back because it’s useful for finding business enterprises - then they looked at private individuals and businesses wondered why they couldn’t expand into those markets too - and here we are
- faissaloo 7y agoNo we brought it back because people are greedy and forgot what it did.