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> Once you flip it around like that it becomes much less attractive to think of forcing banks to make loans that they expect to lose money on. That's not what
by loup-vaillant 4y ago
> Once you flip it around like that it becomes much less attractive to think of forcing banks to make loans that they expect to lose money on.
That's not what I'm proposing, though. I'm proposing that each loan would come with the creation of central money, such that any that falls through results in nothing more than a little bit of inflation. And the people who issue the loans would effectively be government workers. Or contractors or whatever, but they would do all this on behalf of the state.
> Which, again, we already have.
I have to confess ignorance here. Do we have rules that forbid specific industries from contracting loans? (Industries that are otherwise legal, I mean.)
- CrazyStat 4y ago> creation of central money There's no difference between "central" money and other money, though. It's all just money. > Do we have rules that forbid specific industries from contracting loans? Regulations differ by jurisdiction, but generally you can't do any kind of banking business without being licensed specifically as a bank. For example, if you get a car loan "from the dealership" it's not actually the dealership giving you the loan, but a bank that they partner with.
- loup-vaillant 4y agoYou misunderstood my question. I was asking, are there industries, say Oil or Porn, who are by law or regulation forbidden to borrow money from any bank?
- CrazyStat 4y agoI've never heard of such a thing. I would be surprised.