Ah I see the miscommunication, I wasn't really talking about loans but just more like settlements between parties which can use escrow. I definitely see your point about most loans being unimplementable purely as smart contracts. I guess I'm not quite as convinced as you that there can't be a useful role for smart contracts as one portion of a system that also includes legal contracts and traditional liability. It seems to me that it's harder to take out and especially to underwrite loans than it needs to be and I think there's some room for improvement there, though I'm certainly not completely convinced that this will come to fruition.

Thanks for your patience in making me see what you meant!