No. of Recommendations: 4
<Lending money to people who are unlikely to be able to pay off the loan under likely circumstances from the terms of the loan (e.g., jump-ups after introductory teaser rates) fits any ethical, if not legal, definition of usury or loan sharking. And a system that encourages high risk loans where the lender gets essentially bailed out in advance by the government (Fannie and Freddy buying the mortgages) is not capitalism—it is a variant of corporate socialism, as with government subsidies for big Agribusiness or drug companies building off tax-payer subsidized basic research or military contracting.>

Lending money to people who are unlikely to be able to pay off the loan under likely circumstances from the terms of the loan is simply bad business, even for loan sharks. Loan sharks don't want to break their customers' kneecaps. They want to be paid back, so their customers will borrow more.

The system that encourages high risk loans where the lender gets essentially bailed out in advance by the government is, in my opinion, even worse than the loan sharks. At least, the loan sharks are bearing their own risk of loss.

I despise corporate socialism, in all its many forms...as I'm sure you do, also.

Wendy
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