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The personal loans price war is hotting up.
That's a problem, because once Greece leaves, the euro itself would substantially increase in value — and thus the loans' price in drachmas would increase.
The current market represents something of a personal loans price war and intriguingly – or perhaps worryingly – a growing number of lenders are now letting people max out their borrowing.
But subsidies can also consist of loans, price controls, or giveaways in the form of land or water at below market-rates, and many other actions.
Private lenders- often in the lightly regulated shadow banking sector- failed royally to prudently underwrite loans, price risk and disclose information to insurers, investors, borrowers and regulators.
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Furthermore, without the bad loans, prices probably wouldn't have followed the path they followed.
This limit on the loans prices them out of large swaths of Manhattan.
If they withhold loans, prices will fall even further, and the assets can be bought later for even less.
This week you could take your pick from 17 two-year fixed-rate loans priced at below 2%, with Tesco Bank among the latest to join the fray at 1.99%.
With mortgages and other loans priced off such long-term debt, that would do little to shore up already fragile consumer confidence.
But France is a smaller market, and so far nobody has cracked the European market to create a unified lending platform with loans priced in euros.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com