A bank could then turn around and make another loan, earning fees while keeping the housing finance wheels spinning.
The 32-year-old joined the Shrimps in July 2009 and scored 19 goals in his initial season-long loan, earning him a two-year permanent deal.
Although a computer science graduate from Berkeley would probably be a good candidate for a loan, earning power isn't the only criterion — borrowers don't necessary have to be in lucrative jobs, only in work that looks as if it will last; nurses are much liked by Upstart because they are so highly employable.
Under its deal with Fobaproa, the bonds it had received in return for its bad loans earned a higher rate of interest in the early years, dropping in 1999.
This convoluted process is good at making student-loan companies rich — Sallie Mae, the biggest issuer of student loans, earned $1.3 billion last year, with a return on equity that dwarfs most other companies'.
Three-fifths of all loans earn less than 2% interest, and the share is rising .They still are mostly trying to make money from basic borrowing and lending and the loan spreads are microscopic," says Mr Kashyap.
The loans earn China soft-power brownie points at no real cost to themselves," he told BBC News.
Banks could make nearly unlimited loans, earning attractive fees, then pass on the loans to the funds that were scrambling to find income investments for their large inflows.
The Bank's immediate concern with going below their current 0.5% was that it would hurt banks and building societies, many of whose existing loans earn interest directly linked to the Bank's rate.
That money, while not loaned, earns no interest for the lender-member.
