Re:Puerto Rico files for biggest ever U.S. local government ...
by gwbas1c on Wednesday May 03, 2017 @06:10PM
(#14260669)
"Default" is what disincentives giving loans to people who can't pay them off.
Remember that interest on loans that's higher than inflation is effectively profit for the lender; the lender needs to weigh the profit of the loan over the risk of default.
The goal is that every loan is paid off; that's what keeps interest rates low.
Remember that interest on loans that's higher than inflation is effectively profit for the lender; the lender needs to weigh the profit of the loan over the risk of default.
The goal is that every loan is paid off; that's what keeps interest rates low.