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by archbung 2876 days ago
Wouldn't it be pointless to make something that nobody buy?
2 comments

Clearly high interest rates in the 80s didn't prevent banks from making loans. Lets talk about the inverse of of what you're suggesting - perhaps the lack of ROI on loans is preventing banks from doing what they're supposed to be doing - lending to small businesses.
How does a low interest rate prevent a bank from making a loan to a small business?

A low interest rate is not a federally mandated cap on interest it is an increase in supply which drives down the cost. Which should increase ROI.

What you say may be true for almost all the products, unless when the product is 'money' itself. Something worth considering.

Easy access to low-cost loans creates the illusion of affordability and exacerbates over-consumption (over-consumption: a general malady afflicting most humans)

But the article is arguing the opposite of over-consumption, that there are not enough loans to small business.