They also hedge and buy insurance to cover potential defaults and then they write off the bad loan they got stuck with to help offset taxes… So it’s kinda good in a way and they want some but it makes business sense to find the right balance to keep regulators happy and make maximum profit.
It is still extremely far from the old days when money lent, was money/gold in the vault
I have a easier time accepting 8% interest charge when someone actually took money out of their pocket to lend me versus a ponzi like scheme with “strict regulatory rules and statistics blah blah loan loss provisions” (which sounds wonderful and for our good and safety).
They make a shit ton of money…
The models are just risk and likelihood based to determine cash requirements and how much they can lend out (way more than cash they have) yet they charge the same fee as if they had the funds.
I’d rather borrow from my grandma and pay her 8% since she deserves it for parting with her money.
It’s not like the banks need to set aside the full $100k that they extend to you on paper … they have to have “assets” of about 1/10th of that …
Fractional reserve banking . Basically just create numbers out of thin air
That title was rough. I clicked because I thought over 10,000 were dead…
Why not disable ipv6 for local lan?
I disable It on everything for next decade until it’s mainstream.
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Uh, try that and see what happens
They have the upper hand , they will take your assets and sell your debt to collections and the courts will side.
The terms are such that you agree to pay.
What would be better is for everyone to always pay their credit card on time and reap the benefit from cashback rewards on purchases.