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<p>[QUOTE=&quot;medoraman, post: 1361745, member: 26302&quot;]But the only point is that corporate loans have this risk built into the pricing. Every loan has a risk assessment built into the price. This was my point with Rono. If you change the rules and allow masses of bankruptcies to forgive student loans, then this risk would have to be priced into the loans, and its very likely no interest rate would be high enough for any bank to loan students money. Same for mortgages. If you take away the collateral portion of this loan, (ie you can keep your house even if you don&#039;t pay), then the low mortgage interest is a thing of the past. Banks would have to charge 15% or more for a mortgage if a borrower at any moment could just declare bankruptcy and gain free title to his home. Laws like this are NOT without serious long term repurcussions, and socialist politicians act like they are.</p><p><br /></p><p>If you want Much higher mortgage rates, and a MUCH larger of the American population never being able to obtain a mortgage at any interest rate, then pass a law just like it appears Greece has. As has been said, there is no free lunch.[/QUOTE]</p><p><br /></p>

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