ST Alpha - "if loan sharks charge more interest than any of the people they loan to can ever repay back, how do they stay in business?" (Reading a Post)

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if loan sharks charge more interest than any of the people they loan to can ever repay back, how do they stay in business?

Posted by i'm gay for batman (aka chris) Jan 21 '10, 20:25

breaking legs and fingers may make them feel good but, economically, wouldn't it pay them to loan at a rate that actually makes them real money in return

Responses:

I knew a loan shark, had a 2nd hand shop next to the yellow cab garage, gate fee was 35, they paid back 40 next night - z-droid Jan 21, 20:48
I don't know but they aren't going to loan you money for a new card board box - Epiphany Jan 21, 20:28
you take the business that the people own or home the own... - Remlik Jan 21, 20:28 4
- but that would involve perfecting a security interest in the property. i've never seen a loan shark do that -- nm - i'm gay for batman Jan 21, 20:29 3
  - in some cases, they'll make you run errands for them. Stuff they don't want to sacrifice their own people for. -- nm - Beryllium Jan 21, 20:30 2
    - so then go into concierge service or something and actually make a profit you can live on, mr. loan shark -- nm - i'm gay for batman Jan 21, 20:32 1
      - Um, I meant drug mules. -- nm - Beryllium Jan 21, 20:42
Becasue people pay all they can *before* getting busted up. -- nm - Spawn: Champion of ST Jan 21, 20:27 4
- but the shark is still losing money on the overall loan -- nm - i'm gay for batman Jan 21, 20:28 3
  - No, it gets repaid with some of the int paid back. And others pay it all. -- nm - Spawn: Champion of ST Jan 21, 20:29 2
    - okay, maybe that gets them back to even. *maybe* -- nm - i'm gay for batman Jan 21, 20:30 1
      - That gets them to Phase 3. -- nm - Spawn: Champion of ST Jan 21, 20:32
I imagine enough people find a way to pay the OVER 9000% interest. -- nm - Qale Jan 21, 20:27 3
- not according to every TV show i've ever seen - i'm gay for batman Jan 21, 20:27 2
  - TV only shows the stories that have gotten to a point that is dramatic enough to sell commercial products. I'm sure there are mundane loanshark storie -- nm - Beryllium Jan 21, 20:28 1
    - I saw one this week. - Epiphany Jan 21, 20:30

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if loan sharks charge more interest than any of the people they loan to can ever repay back, how do they stay in business?

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