[criley2]

It could but that's the wrong perspective. In "free" system that respects private choice, what can and cannot be achieved isn't as important as what deciders decide on.

A large bank will perform risk analyses and consult with their data and math people, consult their legal people, consult their insurance people, and will choose what they think is best.

So your option can be totally feasible and never chosen by a large bank- a similar fate to many new technically feasible ideas.

But then again, if you were a large entity, would you prefer to be indebted to one large entity, or a thousand small ones? All things equal, I'd rather owe 1 person 1000$ than 1000 people 1$, and I imagine their lawyers and insurance people agree.

[Selfcommit]

I understand why you would only want to owe 1 person $1000, but I think you see more ideas funded as the number of funding providers increases. My dislike of large banks is totally a bias here, but I'd like to think more funding options = superior to a single decision maker.

[Consultant32452]

It's also true that for very very large loans banks already work together to spread the risk.