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View Diary: Obama vs. Usury?  Why Not? (Updated) (251 comments)

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  •  By... (0+ / 0-)

    ...advocating limiting interest rates, you are ensuring by government fiat that people with bad or even moderate credit will never get a loan, ever, at any interest rate.

    I do not believe in "nanny state" telling people by government fiat that they are not allowed to have a loan that the private market would have been perfectly willing to make.

    By doing this, you are telling the single mother with bad credit in Chicago in July that she can't buy an air conditioner because you don't think she should be able to take a loan.

    •  Per your diary... (0+ / 0-)

      For a few weeks, some homeowners with great credit ratings and 5% mortgages would feel cheated when their neighbors suddenly had an equally good deal.

      They wouldn't... because people with marginal credit would not get a loan... at all. I would never make a fixed-rate 5% loan to people who are default risks, not without a massive downpayment.

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