Quote:
Originally Posted by vicky_molokh
When I talk about washing hands off, I mean specifically the banks being very insulated from losses in such cases, as compared to people who get into debt they are likely to fail repaying in time. Yes, rules down the line can be used to mitigate this, but apparently our world hasn't managed to reduce the problem to an un-notable one, and I'm interested in exploring a divergent approach.
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Do you actually want an economic system to reduce the problem to an un-notable one? Because to the extent you do, you inevitably reduce the willingness of people to loan anybody money. That's largely the point of relaxing the religious bans on usury in the first place after all - they sound nice if you are usually a debtor, but the practical effect isn't debtors are better off, but that there are no debtors because nobody will loan them anything.