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Legally you are, of course, correct. Though it is interesting to think about how "moral norms" reduce the cost of borrowing overall and how as those norms corro
by harryh 12y ago
Legally you are, of course, correct. Though it is interesting to think about how "moral norms" reduce the cost of borrowing overall and how as those norms corrode the cost of borrowing will go up.
- rayiner 12y agoI think you're right--if lenders were underpricing default risk before, they'll have to factor it in now and the cost of borrowing will go up. I'm not sure if I think that's a bad thing.
- harryh 12y agoI'm not sure if it's a bad thing on a global scale either. But it's certainly a bad thing for certain individuals. What's super interesting in whether banks will be able to successfully incorporate new data sources to better segment the market to charge different rates for different customers. Will my Facebook posts really tell them if I'm more or less likely to pay back that auto loan on time? Some people certainly seem to think so.