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Re:Puerto Rico files for biggest ever U.S. local government ... by furyofantares on Wednesday May 03, 2017 @10:52PM (#14262056)
> won't it change the equilibrium for future generations of lenders and borrowers such that an inefficiently low amount of lending goes on

Yes, at one extreme, nobody ever pays anything back and no lending ever happens.

But at the other extreme, everybody always pays their debts and the bankers asymptotically approach ownership of 100% of the money.

I think we are closer to the second extreme than we should be.

Re:Puerto Rico files for biggest ever U.S. local government ... by jpttsn on Wednesday May 03, 2017 @11:14PM (#14262150)
Banks lend out of their clients' holdings, so they wouldn't approach 100%.