4 ms·

>Has anyone ever criticised a bank for lending to someone who needs it most at a rate they are likely to afford to minimise chance of default? Does any busines

>Has anyone ever criticised a bank for lending to someone who needs it most at a rate they are likely to afford to minimise chance of default? Does any business operate this way, including the one you work at? That is, selling things to the people who need it most for the amount that "minimizes default" (ie lowest price). >we're allowed to expect institutions to do things that are in the public interest This article is about wealthy mortgage borrowers. The first guy is 60 years old with a $700k mortgage who wants a lower rate. How is it in the public's interest to grant him that? Perhaps it's in the public's interest for this man to continue to pay his modestly higher rate in order to cover expected losses from those who truly need it?

TeMPOraL 6y ago
> Does any business operate this way, including the one you work at? That is, selling things to the people who need it most for the amount that "minimizes default" (ie lowest price). No. But then again, being a businessman isn't seen as unqualified virtue in many places in the world. You'll also note that "selling things to the people who need it most for the lowest price" is literally the justification given for why free and competitive markets are good. It's the goal societies want to achieve. In this, competitive pressure is a hack to force the businesses to reduce prices.
- aguyfromnb 6y ago
  >is literally the justification given for why free and competitive markets are good. If you think "price that minimizes default" and "lowest economic price" are equivalent, you need to brush up on your Econ 101.
bryanrasmussen 6y ago
>Does any business operate this way, including the one you work at? That is, selling things to the people who need it most for the amount that "minimizes default" (ie lowest price). I think a business that sells something for a small markup but makes it up in volume does something like this. So I guess the answer would be - yes - probably most businesses actually do this.
- aguyfromnb 6y ago
  >I think a business that sells something for a small markup but makes it up in volume does something like this. Define a "small markup".
gindely 6y ago
> Does any business operate this way, including the one you work at? That is, selling things to the people who need it most for the amount that "minimizes default" (ie lowest price). Yes > This article is about wealthy mortgage borrowers. The first guy is 60 years old with a $700k mortgage who wants a lower rate. How is it in the public's interest to grant him that? Perhaps it's in the public's interest for this man to continue to pay his modestly higher rate in order to cover expected losses from those who truly need it? I wasn't responding to the article.
andrepd 6y ago
>Does any business operate this way, including the one you work at? Maybe it means that some institutions, especially ones with such a critical role as controlling the money supply, perhaps should not be run with a for-profit model, but some other model that better ensures the institution will serve the public interest, rather than the interest of an exceedingly small handful of elites. Typing this out it seems even more obvious. It may come as a shock to some people, but capitalism isn't an immutable law of nature. There are such things as alternatives.
- aguyfromnb 6y ago
  >but some other model that better ensures the institution will serve the public interest Your social concerns are completely detached from reality if you're shedding tears over people with jumbo loans that are unable to refinance their million dollar mortgages from 4% to 2%. It's theatre. I appreciate your white-collar, anti-capitalist rant, though. Unfortunately, when SHTF, the truly down trodden might even consider people like this part of the problem. I don't think they'll buy the idea that "we're all on the same team!". >It may come as a shock to some people, but capitalism isn't an immutable law of nature. There are such things as alternatives. You're right, we should put our non-elite, galaxy brain politicians, the Trumps and Pelosis and Bidens and Bush's of the world, in charge of controlling the money supply.

TeMPOraL 6y ago

> Does any business operate this way, including the one you work at? That is, selling things to the people who need it most for the amount that "minimizes default" (ie lowest price). No. But then again, being a businessman isn't seen as unqualified virtue in many places in the world. You'll also note that "selling things to the people who need it most for the lowest price" is literally the justification given for why free and competitive markets are good. It's the goal societies want to achieve. In this, competitive pressure is a hack to force the businesses to reduce prices.

aguyfromnb 6y ago
>is literally the justification given for why free and competitive markets are good. If you think "price that minimizes default" and "lowest economic price" are equivalent, you need to brush up on your Econ 101.

bryanrasmussen 6y ago

>Does any business operate this way, including the one you work at? That is, selling things to the people who need it most for the amount that "minimizes default" (ie lowest price). I think a business that sells something for a small markup but makes it up in volume does something like this. So I guess the answer would be - yes - probably most businesses actually do this.

aguyfromnb 6y ago
>I think a business that sells something for a small markup but makes it up in volume does something like this. Define a "small markup".

gindely 6y ago

> Does any business operate this way, including the one you work at? That is, selling things to the people who need it most for the amount that "minimizes default" (ie lowest price). Yes > This article is about wealthy mortgage borrowers. The first guy is 60 years old with a $700k mortgage who wants a lower rate. How is it in the public's interest to grant him that? Perhaps it's in the public's interest for this man to continue to pay his modestly higher rate in order to cover expected losses from those who truly need it? I wasn't responding to the article.

andrepd 6y ago

>Does any business operate this way, including the one you work at? Maybe it means that some institutions, especially ones with such a critical role as controlling the money supply, perhaps should not be run with a for-profit model, but some other model that better ensures the institution will serve the public interest, rather than the interest of an exceedingly small handful of elites. Typing this out it seems even more obvious. It may come as a shock to some people, but capitalism isn't an immutable law of nature. There are such things as alternatives.

aguyfromnb 6y ago
>but some other model that better ensures the institution will serve the public interest Your social concerns are completely detached from reality if you're shedding tears over people with jumbo loans that are unable to refinance their million dollar mortgages from 4% to 2%. It's theatre. I appreciate your white-collar, anti-capitalist rant, though. Unfortunately, when SHTF, the truly down trodden might even consider people like this part of the problem. I don't think they'll buy the idea that "we're all on the same team!". >It may come as a shock to some people, but capitalism isn't an immutable law of nature. There are such things as alternatives. You're right, we should put our non-elite, galaxy brain politicians, the Trumps and Pelosis and Bidens and Bush's of the world, in charge of controlling the money supply.