Some of the bad borrowers seem not to be getting loans at all: there was an unusually high number of investment-grade loans syndicated during the first half of the year, suggesting that standards are rising.
Lenders who cannot distinguish good borrowers from bad become less willing to lend to anyone.
Some pay-day lenders reportedly threaten to use the criminal justice system to prosecute delinquent borrowers for writing bad cheques, a crime that carries a jail sentence in many states.
The NINA was designed as a sort of bridge loan, said Vice Chairman John Hart, for borrowers who have a bad credit rating but need money until they can repair it and get a lower-cost loan from somebody else.
FORBES: Emigrant Fights Back Against Mortgage-Discrimination Suits
It's also crucial to remember that bad loans that plagued speculators and unprepared borrowers don't simply disappear when distressed owners sell their properties.
Although many are victims of circumstances beyond their control, almost all of the borrowers in the stories he tells showed bad judgment, inadequate effort or both.
Understandably these borrowers are reluctant to pay good money for bad ratings, which puts a fundamental conflict of interest at the very heart of the industry.
Peterson said auditors like Warren basically were hired to find the bad apples in the barrel and pull them out: borrowers with payments they couldn't afford, houses with inflated appraisals, people lying about their income.
But the bad news for savers does not seem to translate into good news for borrowers - or not lately, at least.
Instead of wiping out the lenders for the overall benefit of the economy, we wiped out the borrowers and printed money so the government could buy up all the bad loans from the banks.
Many weak, indebted borrowers would be driven out of business should the banks start writing off bad debts and cutting credit lines.
We heard a lot about the banks that were rendered insolvent by mortgage securities gone bad, but rarely about the individual savers with direct and indirect exposure to imprudent borrowers.
FORBES: The Ongoing, and Hideous Lie About 'Victimized' Mortgage Holders
It is also proposing to beef up its existing register of borrowers to allow banks to determine more accurately which credit risks are good and which bad.
Extending fresh funds to bankrupt borrowers poses another problem for Japan's big banks, which are already burdened with bad debts.
ECONOMIST: Bankruptcies can be a beginning, not always an end
应用推荐