> won't it change the equilibrium for future generations of lenders and borrowers such that an inefficiently low amount of lending goes on?
Either there's money to be made, or there isn't. There are penalties for defaulting too, like greater difficulty securing future loans, or higher premiums. It's not like defaulting is free of consequences.
Either there's money to be made, or there isn't. There are penalties for defaulting too, like greater difficulty securing future loans, or higher premiums. It's not like defaulting is free of consequences.