Reply to thread

Message: [QUOTE="MadDogRevival, post: 2511401, member: 8028"] 1. It's not an argument. It's an economic foundational principle - the easier you make it to buy loans to purchase something, the greater will be the cost increase on that something. It's the exact reason that the housing bubble occurred - they lowered the Fed rate to close to zero, making real estate loans drop to 4-5%, and they dropped borrower standards. Result? Lots of borrowers and bidders, and house prices exploded. Put in a Federal program that gives out interest free loans to any adult borrower with a FICO over 400 for up to 60,000 as long as it is spent on a Ford, and the price of Fords will double in a month. Simple. 2. Never mind federal loans. The killer is private loans. I had a client last year with 50,000 in debt on an original 20,000 loan. Not exaggerating. 19% interest rate or some obscene thing. Working at Walmart making 12 an hour. I won that one on a preliminary objection because most of the law firms that chase this money don't have a paper trail back to the original loan. She was little, however, and very difficult to see from the ivory towers of academia. [/QUOTE]