/biz/ - Business & Finance

My guess is that the least credit worthy people will no longer be able to access credit. Ironically hurting the people liberals are trying to help the most.

>>14018578
Europoor here. The fuck is that. 15% per what? Year?
Aren't credit cards like 1+% a month?

>>14018619
This

>>14018619
oy vey this is another shoah

Can somebody explain this for a retardo

>>14018619

> management boot licker

>>14018619
Brilliant

>>14018619
>Hurting people by not allowing them to get into debt if they can't pay it off
Yeah, uh huh, ok

>>14018663
The riskier an investment, the higher the yield must be. So people with shit fucking credit get unfavorable interest rates for creditors due to their potential risk. Some lenders may not think it’s even worth the 15% interest if there it a 50% chance that the piece of shit debtor is able to pay it back.

pay day loan places are predatory and provide no economic value, the earlier these are abolished the better.

but the retards on 4chan will probably see this as socialism and cannot see the retarded rent seeking greed capitalism sparks.

>>14018692
You obviously don’t understand these concepts. You can go sit in the grass now and let the adults talk

>>14018633
15 implies year, most credit cards are significantly higher, but only in the event you don't pay off purchases in the month.

>>14018633
niggers and poorfags willingly get credit cards with >25%APR

>>14018578
I wish they'd pass a bill to charge credit card companys for every letter they send me. I get one every other day from the same credit card companys. I use crypto.com debit card with 3% cashback, I dont need these credit cards, STOP SENDING ME MAIL.

>>14018694
And usually it's better to not let credit unworthy people borrow to begin with, as those likely to agree to over 15%(!) interest rates are not likely to be responsible to pay it back anyway

>>14018663
> idiot looks at market
> decides to cancel all orders of > 15% interest
> free market gets rigged setting precedent for abuse

>>14018707
See
>>14018736

>>14018695
I would disagree if we didn't have a fiat money system, but, since we do have a fiat money system, I agree. If risk is socialized then fuck it

>>14018578
AOC doesn't know that Bernie put in a clause to allow for variable rates. A jew is a jew is a jew.

>>14018695
Wonder why poor people resort to payday loans with all the other cheaper options they obviously have...

I wish my fellow Americans weren't so obsessed with borrowing money. Nothing feels better than being debt-free

>>14018755
The only casualty in this proposal is the kind of Ron Swanson it's-my-right-to-do-bad-things-to-me free market capitalism
But in looking at the good of the community (which includes desperate poor gambling addicted retards at the bottom) it is probably better that they are essentially not allowed from being about to borrow to cover their shopping addiction

By gf's mother got some $40k into debt just by shopping and buying junk and knick knacks, her mother bailed her out and then she got $40k in debt all over again

>>14018759
>I can determine what risk lenders should take on better than the lenders themselves.
Imagine being this full of yourself.

>>14018849
Won't these people just turn to gray or black markets to borrow money?
What about the online moneylenders owned by Indians on reserves that won't be affected by federal law?

>>14018578
>usurers replace with initiation charges and service fees
>poor people still fall for it
>usurers souls keep hell warm

>>14018619
Just like consumption taxes

>>14018849
Yeah cutting off the poor from all access to credit doesn't harm them at all...

>>14018707
nah, dude is right. if someone is that much of a risk then it reasons that they shouldn't be borrowing money.

>>14018578
Higher adoption of tokenized assets and DeFi.
>can't get a loan in a bank or payday lender?
>tokenize your car, transferring its ownership to a spv llc that guarantees the token and own the token (all ready-made solutions)
>move your tokenized car into a smart contract on ethereum
>get a decentralized loan of DAI or USDC at market rates, you don't even know the counterparty, all secured by smart contracts
>withdraw money through coinbase

>>14018968
Based

>>14018968
then what? you default on the loan and someone owns the token on it...so what? they gonna send dog the bounty hunter after your $400 piece of shit ride?

Payday lending rates are high because default rates on these loans are equally high (50%) These shops will have to close down and be replaced by the government or underground lenders which will charge higher rates with more serious consequences for default.

>>14018881
It's not about the lenders nitwit
But yes we as anyone with financial sense can tell that loan-shark rates are never a good idea in any circumstance and not worth it
The purpose of credit anyway is to borrow money against your future self so that you can maximize profits now, it has entirely to do with the time value of money and nothing to do with paying off your Nan's gambling debts or buying a new TeeBee

>>14018692
Riskier people won’t even get approved

>>14019017
>they gonna send dog the bounty hunter after your $400 piece of shit ride?
If your car is worth $400 then probably no one is going to accept your token as collateral in the first place.
In general no different than getting a car repossessed today, just the loan part itself decentralized.
The loan itself is going to be tokenized as an interest-generating asset too... cDAI is the first example of this kind

>>14018619
This will happen and then the left will pass legislation requiring lenders to serve everybody in spite of risk
This will lead to a massive economic downturn

>>14019154
Lmfao

>>14018578
In an age where central banks print money non-stop this will undoubtedly hurt the poorest. Granted any loan above 15% is absolutely ludicrous, loans get made at or above this rate all the time. And yes a lot of these loans get defaulted on. But the person defaulting on the loan still got the benefit of the loan regardless. Who knows maybe that loan kept them off the street for another year. Like most progressive feel-good policies their intent is admirable but the often end up accomplishing the complete opposite.

>>14019077
Loan sharks and their ilk will approve anyone, that's the nature of their business
And if you think you're just talking about wise institutional bankers who never overestimate their borrower's ability to pay, please See: The fucking 2008 financial crisis

>>14019451
>The loan kept them off the street for a year
Ass backwards thinking
It's only a matter of time before the hammer comes down
What will the same person do the next year? Or any year for the next 10 years while the stop have a bankruptcy on their credit report and they can't get a loan?

You're just shifting the consequences of reality off a few years or a few tens of thousands of dollars and making it worse as if you're on leverage

>>14018619

are there people that are currently ineligible for loans... must be because the rates are already capped to low... we need no limits... and maybe we should lower the rules on collections as well

>>14019462
>wise institutional bankers who never overestimate their borrower's ability to pay
>2008 financial crisis

It was LITERALLY caused by the government forcing banks to give mortgages to people who had no business getting any you absolute brainlet

>>14018849
>making laws about saving the bottom of society instead of enabling the best
That's how you get poor countries

it's a price floor on bonds. price floors are bad

>>14019556
Haha nice one nigger
Try to tell me where you found that one
Steve Eisman would disagree

looks like cousin Vinny's loanshark business is back on the menu, boys

>>14019556

Bullshit. Lenders didn't give a shit, they weren't forced at all. Soon as it funded that loan was sold off and packaged into another derivative that could get sold again. Not the lender's problem after the loan is made, they dgaf.

All of that could have gone on even longer if it weren't for the semi-unrelated naked short selling.

>>14019645
oh lord jesus you are a retard of incomprehensible proportions

>Steven Eisman (/ˈaJsmən/; born July 8, 1962) is an American businessman and investor known for having shorted collateralized debt obligations (CDOs), thereby profiting from the collapse of the US housing bubble in 2007-2008.

>A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS).[1] Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS).

>(((Eisman)))

>>14019615
>Muh word soup and lofty proverbs
Tell me how this doesn't enable the best.
You are simply attacking a stance, not an issue
It is economically inefficient to have dumb (literal low iq) poorfags get trapped under debt by their own doing
It's just not an efficient allocation of resources

Credit is FOR borrowing against the future to maximize the time value of money, and whenever people spend money on grossly inefficient ways (and not just in indulgent ways btw, that's fine) our collective wellbeing is hurt

You're essentially saying as if the apple Stand is a good allocation of resources

>>14019710
You just cited his credibility, and then called him a Jew
Which he's not even

>>14018578

nothing. this bitch is a distraction. nothing more.

>>14018578
A really good proposal, in first world according to the situation of the economy the country set a rate that cannot be surpassed by any bank, credit card or short term loaner, if you surpass it then the debtor doesn't have to pay you any interest at all and you're guilty of usury.
In the US I have still to understand how you short term loan sharks were able to convince someone (in fact I know, bribes and lobbying) that since the loan is short term the yearly rate doesn't matter at all so 10% monthly is fine and legal. These rates are created exactly to force the debtor to pay forever because it grows insanely

>>14018578
yep, you're a beta male my dude, better end it

>>14018578
>What will be the consequences of this?

you mean other than poor people being unable to get credit and being even worse off?

>>14019795
I think you might be better off on Reddit. I'm not going to spoon feed you every piece of information and draw up all the relevant facts in a neat flow chart using small and easy to understand words. Keep on believing wrong things.

>>14019154
That's what caused the 2008 crisis

see, affordable housing act

>>14019805
you guys are all sharing memes of jews but you also like usury.
You're a herd of sheeps and don't like her proposal only because muh, she is left and left is bad, I saw it on fox news

>>14018883
>Won't these people just turn to gray or black markets to borrow money

Yes.

>>14019871
this isn't /pol/. leave.

>>14019860
shh. don't let the goy know.

>>14018578
i'd unironically be for this
any interest above 16% is usury and jewish tricks

>>14020016
yea well enjoy your mass starvation and gulags you fucking commie pig

>>14019871
Stay poor retard

>>14019906
>>14020033
sure, genuinely hope you're trolling or I was being unfair with the sheeps in my last comment

>>14018619
As usual somehow, first post is best post. The best part is it's going to drive up the costs of credit for every one in general as the industry shifts back to a fee based structure with significant annual fees.

>>14019533
checked and based

>>14020033
>having to buy food on debt
if you have to take out a loan to buy food, the system is already truly fucked
https://centerforinquiry.org/blog/are-1-in-4-americans-going-into-debt-buying-food/
higher interest rates just push them deeper and deeper down into a debt spiral

is there any way to delete the original person i joined under and join a different group?
the guy i'm under only has me and the earnings are poor

Why the fuck would anyone ever buy something on credit with a 15% interest rate? It's literally burning money.

This is the bitch that wants to ban airplane travel

>>14018578
Short consumer “baller” brands if it passes.

>>14018578
I used to rage when I would see people who claim they're trying to help the poor fucking them over out of naivete. Now I just wonder how to profit from it.

Call me crazy buy ALL debt that isn't financing things that increase productivity should be illegal. This includes cars, houses, TVs. There is zero reason to allow these things to be paid for by debt. It doesn't increase productively, only increases it in the short term, and decreases it in the long term by allowing people with money to make money doing nothing productive. Loans should only be provided to vetted business prospects.

Of course, this will never happen because the people on top and the generational wealthy elite that influence most politics are the very people who make money doing absolutely nothing but sitting on capital they either inherited to gained through one off random windfalls.

>>14018619
access to debt enslavement does not help poor people

>>14018578
This looks like a prelude to anti-usury laws. Excellent

>>14018736
this
It seems quite rational
But is it really that simple? I guess there must be some further implications/ agenda behind

>>14021212
>make money doing absolutely nothing but sitting on capital they either inherited to gained through one off random windfalls.
so? thats generational wealth. not my fault your grandparents were some junkies and you are inferior seed. somebody always worked for the money, it doesnt matter if you got it for free.

gas yourself commie

Seems like an attempt at oligopolization of lending
You actually have to len at higher rates to niggers et al to offset those who are not going to pay.
At 15% capped rate only a (((few))) will risk it.

>>14021370

Yeah, WORKED for money, or provided capital to productive businesses, not turned generations of people into brainwashed debt slaves from birth to finance their lifestyle while doing nothing.

>>14018619
Right, credit cards will suddenly want to stop profiting off poor / dumb people because they can only do 15% instead of 35%.

>>14018619
>predatory loans are somehow good for poor people
Wow, so this is the power of /biz/

>>14021370
>hurr durr fuck u got mine
Keep up the outstanding political discourse

>>14021425

>some people sign up for loans they can't pay back
>we'd better ban all people with bad credit from signing up for loans

Democrats love banning freedom.

>>14018619
fpbp. It also means a lot of capital is going to be locked up/unusable. So for the banks to keep on being as profitable as they are, they will have to take on riskier investments for less reward.

Because shit cant be priced correctly according to the relative risk, when people or companies start defaulting things will go bad quite fast.

But heh. muh liberal leftist faggots as usual cant use their brain for anything more than thinking about "muh free gibs".

>>14021425
you can be poor and still have good credit retard.

>>14021470
>implying any poor faggot is somehow leveraging these loans to increase his wealth.
Please kys

>>14021495
> implying they don't
what a naive whiteoid

>>14021486
It doesn’t mean any of those things. Taking some profit away from banks is not a bad thing. You’re not as smart as you think you are. Not everything proposed by a person on the left is bad because of some unforeseen consequence that only smarties like you understand. You are retarded

>>14021495

>a person does something that's bad for himself
>we'd better ban everyone from doing it

I guess shitposting on 4chan should be banned next, right faggot?

For once I agree with her.

The only people who will lose money on this are scheming Jews and they can burn in hell.

>>14021514
We should if it’s obviously predatory, which these insane interest rates are. If you just want to exploit poor people, then admit it. Don’t pretend high interest rates are doing anyone a favor, faggot

>>14019462
>poor people can just use loan sharks
>we gotta save the poor!

Because they can demand more than 15% you fucking retard.

>>14021510
>ignore your calculable unforeseen circumstances
>agree with my retarded unforeseen implications

>>14021553
Muh free market
Kys

>>14018578
Based and usurypilled

>>14021510
>it doesnt mean any of those things
how retarded are you?
why would a bank lend to someone for 15% who has their risk priced at 30% interest a year?

The bank now loses out on that 30%. Since they can't just have capital sitting idly, they are put under pressure from shareholders to generate profit elsewhere. As a result, they invest in riskier shit.

a) the poor person now does not have access to credit that he otherwise would have got at 30%
b) the risk profile for banks goes up

kys.

>>14019860
That passed in 1988!

It took 20 years but I guess the greedy banks had nothing to do with it. Its always the poor peoples fault.

>>14021606
If one bank doesn’t want to take the risk for 15% interest, another one will. This is the “free market” you morons are always blabbing about

>>14018578

Usury is immoral

>>14021646
>If one bank doesn’t want to take the risk for 15% interest, another one will.
thats not how it works you absolute fucking brainlet.

If one person doesnt want to sell a bitcoin for $10 then another person will - that's literally what you just said. At this point I am pretty sure you are just baiting tho. gg. got me to reply to you twice.

>>14021665
>i know every single bank’s risk profile and can predict 0 banks will want to lend at 15% interest

>Sephardic Jewess and an Ashkenazi Jew propose legislation against Usury
wtf

>>14018578
should ban usury entirely

>>14018881
i had this conversation with a few banks lately
fucking nanny attitude instead of give me a quiz about understanding loans interest repayments budgeting shit like that they just refused to loan the amount i asked for.

>>14021723
fucking retard. The banks risk profile is irrelevant. What matters is the risk profile of the person seeking credit. Which in the example is ~30%. So why would a bank lend to someone with that risk profile for 15%...

>>14018578
Nuclear kvetching

feed the debt cucks to the sharks or don't.
doesn't matter to me.

>>14018619
I see you were born after 2008
Sorry but you need to be 18 or older to post here

Why do payday loans even exist? What do people buy with them? I've only ever used credit cards but I've always paid at the end of the month so I never really accrued any credit card debt.

>>14022600

Repairs and upgrades to the car they bought on credit. Only the most desperate and most financially illiterate people take payday loans. That's why they all exist in the ghetto.

>>14018619
Bad take, study some economics

>>14018695
Their bill only attacks banks.

>>14018619
No, that's when we recreate subprime lending instruments and become super-rich off the derivatives and futures issued on the value of those subprime loans.