tag:blogger.com,1999:blog-7539577136486286096.post4027784205000910183..comments2024-03-28T02:46:41.090-05:00Comments on Supply and Demand (in that order): Another Link Between Financial Collapse and Labor UsageCasey B. Mulliganhttp://www.blogger.com/profile/03317454408275318282noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7539577136486286096.post-5292226708970231202010-03-11T12:34:58.994-06:002010-03-11T12:34:58.994-06:00In essence, the first paragraph seems like it is j...In essence, the first paragraph seems like it is just a restatement of the proposition that limited liability entities provide a subsidy for failure. Your reverse formulation is that this is like a tax on success. If your point is something different, I don't see it because lenders (whether secured or unsecured) seek to maximize their return on each loan independent of any other loans in their portfolio. True, they charge a higher rate than they otherwise would because of the risk of bad loans, but this is just an effect of having limited liability borrowers.DWAndersonhttps://www.blogger.com/profile/11912588081258797990noreply@blogger.com