Ok, so just so I’m clear, it sounds like a good way to pump up a tired economy; simply lower interest rates so people borrow, and then pretty soon everyone’s borrowing (and hopefully spending), and it stimulates the economy.
The problem is people are borrowing to obtain assets that are overvalued, so they actually have to borrow more than is really needed. Wouldn’t banks want to make sure home appraisals are indeed based in reality, else they (the banks) are also overextending themselves? Or is there something to be gained by the banks for lending bigger loans? Yes, maybe they get to post bigger ‘sales’ or loans, but that seems really risky to me. MONEYMAKER BANK is really making it’s own money.