
Has anyone seen The Big Short?
Essentially what happened was banks gave out loads of mortgages to people who couldn’t really pay. They packaged those loans and sold them as low-risk investments. When people started defaulting, the whole thing collapsed and took the economy with it.
Does any of that sound familiar with how OPay, PalmPay, FairMoney and the rest are handing out loans left and right? I personally know people who took these loans with zero intention of ever paying. Some just borrow from one to pay the other and buy data with the change.
Of course it’s not going to be 2008-level catastrophic. But what’s the realistic worst that can happen here? Individual lenders going under? People getting trapped in debt cycles? Or is the scale still too small for serious systemic damage?
Any actual financiers, economists or people who work in credit in the house? Curious what you think.
(For context I’m a graduate architect. Being broke is what made me start paying attention to politics and economics.)