Where will loans come from?

If fewer people use banks, and they don’t have nearly as much money to lend, how will I obtain a loan for my home or business?

A:

Loans come from lenders. There will be plenty of private lenders who, lead by the desire to compete, will specialize in offering a variety of competitive loans along side the many other products the financial industry offers today. Lenders have everything to lose if it turns out they’ve lent you money you cannot afford to return. “Bankers” are not real lenders since they can 1) afford to stay in business after lending you money you cannot afford to return, and 2) depend on government to obtain their inventory (cash) from the public at below market rates.

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