Quote:
Originally Posted by Locke
No wonder the NDP got elected, look at people wanting the Government to protect them from lenders and vice versa. At what point is your interest rate the Government's problem.
And while I'm morally pleased about making life harder for Cash Stores it should be reiterated that these are Lenders of Last Resort.
First of all if you're borrowing from them you have to be desperate, not that that should mean you're forever entwined in a life of enslavement to them, but at the same time they're giving the riskiest loans, so yeah, their interest rates are going to be insane, and secondly if you're borrowing from them it means no one else will lend to you and there are probably 'personal decision' reasons behind that unwillingness.
Similarly, if lenders want their loans guaranteed by the Government then they're not taking any risk and as such their rates would have to be adjusted to reflect the complete lack of risk. Then lenders would just have a supply.
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We have to be careful what we wish for. Down in the US, in some states if you miss a payment for whatever reason, your interest rates spike on the outstanding debt. Plus they add penalty fees on top of that. That's highway robbery and that's why we hope our government keeps things somewhat regulated here.
And if we want the government completely out of giving loan guarantees, then we should start with the CHMC. Does that sound like a good idea?