David_J_Balan comments on Mandating Information Disclosure vs. Banning Deceptive Contract Terms - Less Wrong

21 Post author: David_J_Balan 20 December 2009 08:55PM

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Comment author: David_J_Balan 21 December 2009 06:43:34PM 0 points [-]

If credit markets worked the way they were supposed to, the terms on which you could get credit would indeed depend on objective measures of your credit-worthiness. Any adverse event would appropriately cause the credit markets to downgrade their opinion of you, and worsen the terms on which you get credit. But I have never heard anyone seriously suggest that the data bear out a conclusion that being a day late with a payment indicates that you are a credit risk so massive that a 29.99% interest rate is appropriate.