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"High risk individuals"? The "risk level of the individual" is totally wrapped up in how well the economy is able to provide people with adequate amounts of in
by blurbleblurble 4y ago
"High risk individuals"?
The "risk level of the individual" is totally wrapped up in how well the economy is able to provide people with adequate amounts of income to pay off debt, and that's not something any individual can determine. If there are systematic shifts that make it much more difficult for individuals to keep paying their debt, those individuals will become "high risk individuals".
- ameister14 4y agoSure, if the entire economy collapses people will start to default on their loans. What happened in 2005-2008, though, was people defaulting on their loans caused the economy to collapse. So while a low-risk loan can become higher risk depending on circumstances, classifying an existing high-risk loan as low-risk to improve your bottom line is never a good idea.