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The article says the government "convinced" banks and other companies to cancel the debts, but the lenders will not be compensated. It's left as an exercise to
by ctdonath 12y ago
The article says the government "convinced" banks and other companies to cancel the debts, but the lenders will not be compensated. It's left as an exercise to imagine how the lenders were convinced.
I have to wonder the same about the US banking system about 8 years ago: the aforementioned subprime problem apparently led to top bankers literally being brought into a room and told in no uncertain terms they would agree to the planned solution to the problem; what was actually said remains unknown and rather...intriguing.
- dragonwriter 12y agoThere's a thing here -- with widespread bad debts, its generally not in the interests of lenders to write them off individually (because it means that those likely to default are attracted to those lenders that seem most willing to do that), but when there is a major wave of them, its in the interest of the lenders for them to be addressed en masse so that the system as a whole is dragged down by the burden those debts put on the consumer market.