Replying to Avatar Laeserin

Especially a large loan, that gets paid back over years or decades. Once you add "time" as a large factor, under falling prices and with risk of default rising over the life of the loan, it's like,

How is that a sustainable business model?
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ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

this is how free market hard money interest rates arise - through the combination of the amount of reserved money being used for lending, versus the rate of failure of loans, it's pretty simple math to come out with a living from it, but it is risky at first until you get a measure of your default risk rate

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ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

keep in mind, as you observed yesterday, or the day before, money that is in cold storage has a different character to cash on hand and savings (which are a little harder to dig at)

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Low Information Voter 1y ago

Your default rate as a loan shark is substantially the product of your demonstrated capacity for violence. Your own, or via privileged access to a State's capabilities.