5 ms·
Not really, because it could just set a metric on how cheap debt is before it purchases (i.e the 30:1 return they mentioned). In the end creditors want to get
by Volpe 14y ago
Not really, because it could just set a metric on how cheap debt is before it purchases (i.e the 30:1 return they mentioned).
In the end creditors want to get rid of risk, so if someone isn't paying the loan, getting 1/30th of that money is better than 0.
I don't see how this could create a competitive (and thus drive prices up) situation.
- ISL 14y agoIf I understand things correctly, it may drive borrowing costs down by lowering the lender's risk exposure. (If you loan money to someone, and they don't pay you back, with this program there's a tiny chance that OWS will, lowering your risk. Curious to see OWS bailing out bankers as well as debtors.)