dstebbins
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- Oct 22, 2005
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- Very Liberal
This may seem a little radical/stupid/extreme/etc., but it just might work, so I hope you will overlook the radical change that this will bring about and think about the good it could bring.
Look back to the history of the United States economy. Almost all of our recessions, and all of our depressions, had a role played in them by the naive people borrowing too much money in the days of easy loans, going bankrupt when the banks demand their money back.
So I have an idea: Limit, by law, the amount of money a person with x credit rating can borrow. Congress can be sure to provide for a person getting a morgage soley for the purpose of buying a needed -- I repeat, needed -- house, buying a car whenever they absolutely need it (and a cheap car at that), and other necessities. A person with bad credit could not get a million dollar loan, no matter what interest they agreed to pay (I always objected to the tradition that people with bad credit get treated to higher interest rates. After all, it's those people who can't afford these rates). We'll also limit the interest rates that a bank can charge a borrower, referring again to the parenthesis.
Think about the good that this radical change could bring: With less debt, we could at least delay recessions and prolong boom periods, if nothing else. Let the debate BEGIN!
Look back to the history of the United States economy. Almost all of our recessions, and all of our depressions, had a role played in them by the naive people borrowing too much money in the days of easy loans, going bankrupt when the banks demand their money back.
So I have an idea: Limit, by law, the amount of money a person with x credit rating can borrow. Congress can be sure to provide for a person getting a morgage soley for the purpose of buying a needed -- I repeat, needed -- house, buying a car whenever they absolutely need it (and a cheap car at that), and other necessities. A person with bad credit could not get a million dollar loan, no matter what interest they agreed to pay (I always objected to the tradition that people with bad credit get treated to higher interest rates. After all, it's those people who can't afford these rates). We'll also limit the interest rates that a bank can charge a borrower, referring again to the parenthesis.
Think about the good that this radical change could bring: With less debt, we could at least delay recessions and prolong boom periods, if nothing else. Let the debate BEGIN!