Comment Re:I dont see any issues with them. (Score 1) 529
I was just reading about that today. Since issuing loans with fractional reserve is more or less a zero-cost for the bank (apart from a minor admin overhead unrelated to the size of the loan), interest isn't really deserved. So what would happen if interest wasn't payable on loans with no reserve behind them, or perhaps fractionally according to the fraction of reserve? Obviously it would make the loans far less attractive to the banks, but would it also undermine the markets built on the virtual money printing operation they represent (which isn't much to do with the interest)?