If Congress allows for the sale of visas through an immigration tariff, a market for gold card credit could be expected to develop within the large U.S. market for consumer credit.
7 This section estimates the potential value of that debt market for gold cards based on simplified assumptions regarding visa pricing and financing options.
The actual size of the debt market would likely differ, depending on the structure of gold card issuances and the specific circumstances under which a market for financing their purchase might develop.
To estimate the market size of debt financing options, we first must estimate how many gold cards would be purchased in a given year, at what price gold cards would be offered by the government, and what financing options would be available to purchase the gold cards.
Once the market understands the risk of lending to migrants to purchase gold cards, financial institutions could combine them into visa??backed securities to create a more predictable financial market.
Securitized gold card loans could create an enormous financial market, but we do not attempt to estimate the size here because so much would depend on how the market for gold card loans would function under real market conditions subject to the rules and regulations that would accompany an immigration tariff.
The possibilities for creating future financial instruments based on financing gold cards is limited by the extent of the market's imagination and the rules of exchange.
https://www.cato.org/publications/immigration-research-policy-brief/financing-immigration-financial-market-value-market
7 This section estimates the potential value of that debt market for gold cards based on simplified assumptions regarding visa pricing and financing options.
The actual size of the debt market would likely differ, depending on the structure of gold card issuances and the specific circumstances under which a market for financing their purchase might develop.
To estimate the market size of debt financing options, we first must estimate how many gold cards would be purchased in a given year, at what price gold cards would be offered by the government, and what financing options would be available to purchase the gold cards.
Once the market understands the risk of lending to migrants to purchase gold cards, financial institutions could combine them into visa??backed securities to create a more predictable financial market.
Securitized gold card loans could create an enormous financial market, but we do not attempt to estimate the size here because so much would depend on how the market for gold card loans would function under real market conditions subject to the rules and regulations that would accompany an immigration tariff.
The possibilities for creating future financial instruments based on financing gold cards is limited by the extent of the market's imagination and the rules of exchange.
https://www.cato.org/publications/immigration-research-policy-brief/financing-immigration-financial-market-value-market
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