2026-01-12 21:30:27

Interest rate caps might look appealing on paper, but here's the catch—they could seriously backfire on everyday Americans who rely on credit access. When lending rates get artificially capped, lenders tighten their belts. Banks start rationing credit, borrowing becomes harder to get, and those who need it most often get priced out completely. The real issue isn't capping rates; it's understanding how credit markets actually work and the unintended consequences that follow.

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MagicBean

· 01-15 21:30

To be honest, I've heard this theory countless times... but every time I hear it, I find it a bit far-fetched. Does limiting interest rates necessarily lead to credit tightening? What about those European countries? They are still living well, aren't they?

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wrekt_but_learning

· 01-15 03:27

Honestly, the interest rate cap sounds good in theory, but once implemented, it's game over... Banks definitely won't foolishly lend at a loss, and in the end, the ones who suffer are us small retail investors with low credit limits.

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SchrodingerWallet

· 01-12 21:59

I've heard this logic countless times, banks are always passing the buck to policies...

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ShortingEnthusiast

· 01-12 21:58

Basically, it's a typical case of policy backfire. It seems to help people, but in reality, it makes things worse for those in the most difficult situations. When interest rates are restricted, banks start to cherry-pick clients, and those with insufficient credit scores are simply rejected. Isn't this cutting off the source of the problem?

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TokenToaster

· 01-12 21:42

That's right. The interest rate cap sounds good, but in reality, it's shooting yourself in the foot. When banks tighten, the ones who need money the most are actually unable to borrow.

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