my thoughts on usury: if you don't want to take out a loan, don't get one
so the person I'm thinking about is one who pattern-matches to high risk and can't get the small business loan, but can't afford (nor should they be willing to) the usurius credit card interest rate. they won't be able to finance their plan at all under these conditions.
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Can you construct a concrete example for me here? The kind of business that would even be viable for a business loan usually has assets it can use to secure the loan if the owner's credit is poor.
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If you're telling me there is a missed financial opportunity in lending at low interest rates and very little upside to people with (speculative?) small businesses that have no concrete assets that can be used to secure the loan I am going to have a hard time taking it seriously
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i'm talking about the class of people who for very good reasons look like poor shmucks to banks and will not be able to get a collateral-backed loan because they have no collateral. i'm saying that for structural reasons some people fall through the cracks
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The market is trying to tell them the thing they want money for doesn't have enough upside if investors aren't interested.
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yes, exactly. that's what i mean by "structural reasons". conventional financiers have good reasons not to make that loan. too high risk (statistically speaking) and too low upside (statistically speaking). there aren't many good alternatives in this case and that kinda sucks
End of conversation
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