[quote=briansd1]Of course, poor people are more likely to default, but it doesn’t mean that banks cannot build a profitable business model around serving the poor.

How would you feel if, when a restaurant is busy, the owner only decides to seat people who are most profitable. Although you’re a frequent patron, you only order one entree and water, so you’re kept waiting and waiting. It doesn’t mean that you are not profitable but the owner would rather first serve people who order wine because he can make more money off of them.

BTW, that’s why popular restaurants take reservations. They recognize the names and assign reservations accordingly.

When there’s high demand for a product or service, businesses will want to serve the most profitable customers first. They revile being told otherwise.

Your argument is like saying a household’s bankruptcy was contributed by their $100/mo cable bill. The medical bills are $20,000 overdue, and the house payments are $3,000/mo; but the $100/month cable bill contributed to the bankruptcy. That would be correct.

But if the house payments were only $1,000/mo, the family would be worry free and enjoying the cable service.[/quote]

Brian: Huh? I have no idea what sort of point you’re trying to make here.

I do understand that you’re now saying that poor people are more likely to default than others, which is the opposite of what you were saying earlier.

However, I cannot make heads nor tails of your restaurant and cable bill analogies. Are you saying that restaurants know which patrons are more profitable and thus seat accordingly? A restaurant is not a bank, and operates from a completely different business model.

As far as cable bills versus medical bills: Well, you’ve stumped me here, too.

If you could offer some more specificity, or what your underlying point(s) is/are, I could take a stab at responding.