What would be the point of lending at all?
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I think the banks would collapse
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Don’t think loans would exist. Seller prices would increase vastly beyond loan, banks would assume you have no intention of paying loan back and would everyone stop working anyway?
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Loan lifetimes would drop from 60 months to 12 days. Interest would be payable every 5 hours. Rates would jump to 5% *per day*. Based upon these facts for a typical 5-year personal loan: * 6.3% of client's lifetime * Lender ROI: 1.75x Also, we'd be colonizing the solar system.
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In the absence of infinity it would have to be zero.
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(Cost of rocket ticket/ net worth)*f(ability to survive off earth,value in new system, reproducibility) So I am thinking high
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All banks would collapse as customers demand immediate liquidity when the disaster is announced.
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Same as now, when everybody knows about climate change.
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Assuming that the generalized bank as a rational economic player, whose target value function to optimize stays true to charter, the interest would depend on the anticipated default rate, the current and projected economic conditions.
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