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+1. To add, now banks will have no incentive to be careful about who they lend to. In fact they will in all probability begin making riskier and riskier loans
by vishnugupta 4y ago
+1.
To add, now banks will have no incentive to be careful about who they lend to. In fact they will in all probability begin making riskier and riskier loans knowing fully well that if they make enough loans to become a "systemic risk" they will be bailed out by future tax payers.