All Loans and Traditional Banking invloves RISK like anything else

[Bitcoinpro]

their is an incredible probability growing

that the debt backed fiat system could implode

and I find it very doubtful that these loans will be paid back

their is no creditors on house loans the mortgage creates

the loan in the first place it is never loaned from

reserves

(otherwise their would be no gigantic housing bubble)

the house loan fiat is simply created when the loan is made

and many loans are illegal and not supported by tangible income

and require a tenant without the ability to take a house loan

to pay off the loan for the person who actually took the loan

who would have had a donkeys chance of paying it off by themselves !!!!!!!!!

[Lauda]

Belongs in Off-Topic

+1

Well just imagine what happens when Russia decides to pay their loans back 'later' due to the issues with Rubble. Since everything is interconnected, banks would start going down 1 by 1.

[cyberpinoy]

Banks are just crazy, my wife and I applied for a loan for a house we were renting , we were offered to buy it and the bank said NO, now get this by buying the house our expenses for the onth would have dropped almost 600 dollars a month, but the bak said they would not lend us a loan for the house we wanted to buy but would lend us a loan for a house thaqt was over 140,000 dollars more expensive than the loan we were asking for. a loan that i might add was way out of our ability to pay back.

We never took the loan and closed our accounts we had with that bank for 3 years and moved to another bank. Oh wait we completely moved to another country HAHAHA.

[Window2Wall]

You are right. Banks do take risk when they make loans. They are also experts (at least they should be) at managing their risk. Traditionally banks have been very good at managing risks and as a result have made money over most time periods.

I am not sure what your point it? Just because they are taking on risk does not mean they are going to fail

[sdmathis]

There is always risk when you loan money. Even buying a government savings bond entails some risk.

[botany]

Of course there is risk.
Credit-driven economy expansion isn't really bad.
It has really improved the lives of many people. We just have to make sure that there are no "excesses".