I totally understand the banking system and that has nothing to do with people not paying their obligations in full.
I still believe that bankruptcy should never be allowed under any condition!
Nothing but food until your debt is paid.
Yay, let’s have debt slavery !
Tell me, if you understand lending, what is an interest rate ? What’s its purpose ?
It has 2 - the first is a payment on the time value of the money. AND the second is... ding ding ding ... a valuation on RISK !
Yes, risk !
And what would that risk be for ? Why, I do believe it is for the risk of default ! Yes, in the history of the world, borrowers across the ages have run into problems with payments.
And then, oh august one, why do some loans, like mortgages, have lower interest rates than consumer loans ?
Ding ding ding, yes, that’s the price of, dare I say it, RISK !
If you don’t want risk, loan only recourse loans.
And there you have it.
Unless your name is Guido and you have guys who will break kneecaps on command.