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The regulator recommended that the government should take steps to help short-term borrowers to make better borrowing decisions.
They and their families made borrowing decisions based more on emotion than reason, much as subprime borrowers assumed the value of their houses would always go up.
Poor borrowing decisions by millions of consumers contributed to the Great Recession.
Governments should be responsible for the consequences of their borrowing decisions.
That way, consumers could put the information into online intelligent "choice engines" to help them make better borrowing decisions.
How are students making borrowing decisions?
Similar(48)
Since this is the startup's secret sauce he's wary of being too specific about how it works, but one example of an input it could factor in to a borrowing decision, along with a multitude of other signals, is whether a potential borrower takes the time to read an FAQ section on the website, or how long they spend looking over the detail of repayment information.
Personal information has an important influence on loan performance, borrowing, and lending decisions (Bachmann et al. 2011; Chen & Han 2012).
In addition, the plan would limit how much could be borrowed — probably 1 percent or 2 percent of the total budget, so lawmakers do not rely on borrowing to shirk difficult decisions on spending cuts, though any increase in borrowing will be controversial.
Agents may make borrowing, lending and saving decisions under the misleading impression that the commitment is unconditional, only to find out that the central bank is forced to 'renege' at some point in the future.Third, does it make any sense to pre-commit to lower rates when 'low for long' is already priced into the financial markets?
Thursday marked the one-year anniversary of 2008′s internationally-coordinated emergency central-bank rate cut, so it was fitting that two European central banks announced their latest decisions on borrowing rates: both the Bank of England and European Central Bank held rates at record lows of 0.5% and 1%, respectively.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com