4 ms·
While this is interesting and I'm sure technically correct from an academic standpoint, it falls flat in the discussion. To say the way debt is treated in the u
by mjparrott 6y ago
While this is interesting and I'm sure technically correct from an academic standpoint, it falls flat in the discussion. To say the way debt is treated in the us is not 'immoral' means you haven't learned enough about it yet.
- alejohausner 6y agoWell, let's discuss it. Why do riskier loans command higher interest rates, if not because the lender is making a calculated bet, and the borrower knows that he might default?
- zajio1am 6y agoThe fact that risker loans command higher interest rates and lenders making calculated bets is obvious, but it does not follow from it that borrowers do not have moral obligations to repay loans. Risk-surcharge just reflect the fact that even if borrowers have full honest endeavor to repay debts, they may sometimes fail. If we considered to be ok to not repay debts because a borrower just does not feel obligated to do so (and does not need more loans from that lender), then risk-surcharge would be extremely larger.