6474366 - consider/actual defaulting only if it provides a...

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Individuals, just like some companies, are rated for credit risk. Standard and Poors and Moodys are the popular credit rating agencies. For individuals there is the FICO scoring. Although an individual has good credit ratings and isn’t a risk for defaulting, say on credit cards, can the government provide the wrong incentive for an individual to consider/actual defaulting? Answer It is possible for the government to provide a wrong incentive for an individual to
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Unformatted text preview: consider/actual defaulting only if it provides a scheme to pay off in case of an individual defaulting like having intervened and helped the firms that went bankrupt due to the economic recession. But as the government does not consider helping people who are indebted due to their comparative economic insignificance, it is not possible that the government provide a wrong incentive for an individual to consider/actual defaulting....
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