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Sure, but they now have the money back and can lend it again, which may even work to their advantage if interest rates have risen since the loan was signed. It
by lutorm 11y ago
Sure, but they now have the money back and can lend it again, which may even work to their advantage if interest rates have risen since the loan was signed. It seems impossible to me to say that the net effect is a sure loss.
And that's entirely beside the point that "not making as much money as I had hoped" is not the same thing as "lost money".
- seiji 11y ago"not making as much money as I had hoped" is not the same thing as "lost money". It depends on how you account for it. Technically you shouldn't assume all your future interest is materialized (IANAA), but if you run forecasts and see you have a million people who owe you a billion dollars total on a 7% interest rate over the next 20 years, you expect to have, within reason, that money. If something incredible happens and all those people suddenly pay off their loans this month, that drastically changes your future (especially if your loans were at a higher interest rate from the past you can't re-charge today).
- cmdrfred 11y agoBut you are still a billionaire so I won't be shedding any tears for you.