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Originally Posted by sebastian_dangerfield
*Outside credit cards, factoring models for which only work because the creditor controls the cash flow and can directly hammer the borrower for payment... and makes money on high enough across-the-board interest to offset losses.
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Credit cards aren't third-party payer situations. There isn't anyone guaranteeing your credit card debt, and the lenders have to weigh risks accordingly.
ETA: Btw, students loans are an interesting variation as the third party guarantee only explains some of the $100k in loans to the history major. Apparently the private lender who is providing the rest is sufficiently comfortable with the interest he's getting and the student's projected ability to pay. So I guess I'm skeptical that you've pinpointed the right source of the problem for escalating education costs. I think it has more to do with supply and demand, and having "artificially" constrained supply, the institutions' ability to extract higher payments thanks to the availability of financing.
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Too much policy think, not enough appreciation of how a market, and the brain of the common consumer, operate.
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I don't think that's accurate. He just isn't interested in a world in which we just write off people who can't afford to pay for their health care.
Obviously if one is freed of the constraint of wanting to provide health care for all (or all old people), it's pretty easy to control the cost of health care to taxpayers.
