3 ms·

I'm not sure I totally understood the system that you are envisioning. For example, at one point you say something like: banks will need to find some other way,

by mjfl 12y ago

I'm not sure I totally understood the system that you are envisioning. For example, at one point you say something like: banks will need to find some other way, besides lending at interest, to get profits. How does your system not just disincentive lending all together? And if lending money at interest is immoral, how should a first-time home buyer find money to buy a house?

skilesare 12y ago
Great questions! I'm not sure interest is immoral really. I just think it make more sense for it to be low. In the specific instance of a first time home buyer, this person is typically young and has a lot of earning ahead of them. They can get a lower rate because the banker is thinking more like a VC now and will issue a low interest rate loan to bet that this person will have a significant amount of cash go through their account over the next 80 years that will add up to a nice profit for the banker. The banker's interest in the well being of the person also extends far beyond the repayment of the principle. Win-win for everyone other than the vampire bankers out there.