Quote:
Originally Posted by Ron Bennett
Depends on who she owes the money to. If it's another person, I agree wholeheartedly with what you're saying.
Sure she should try to pay the bank loan, but if she can't in a reasonable time period, then why should she? The bank isn't ethical - they just do whatever it takes to make more money. And yes, banks literally "make" money for loans via the Federal Reserve. As for what the bank is losing ... likely little to nothing. Borrow money from the FED at 0.00-0.25 and loan out at 10% or whatever - the bank is making a bundle even if a large number of borrowers default; it's already factored in ... and, especially if it's a large bank, they've miscalculated their exposure, no problem, the government will bail them out.
Bottom line, ethics mean little to nothing in business, especially when the framework itself is corrupt and tilted against the average person (read a EULA or consumer agreement sometime; credit cards can charge any interest rate they want and yet an individual legally can't). One needs to look out for their best interests just like businesses do for theirs.
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I don't really agree, it makes little difference where the money came from, it's a bit misguided to think that just because it came from the bank there is nothing wrong with not paying it back. We will all have to pay the costs of her defaulting the loan, the ripple effects though very indirect are certainly there.
For example, as the default rate rises, so will interest rates for everyone else, so will number of hoops one will have to jump through to get the loan, etc, heck even the bank employee that approved her loan could lose a job over it, etc....
Though filing bankruptcy may be in her best interest, it becomes a bit unethical when everyone else has to cover the costs of her financial recklessness...
