The presence of a secondary loan market affects how banks choose to borrow money. When the economy is doing well, banks tend to borrow more if they can sell their loans at a fair price. This helps them make more profit from their investments. However, when the economy is struggling, banks borrow less if they can sell their loans. This means that the impact of loan sales on a bank's borrowing decisions depends on how the economy is doing. In good times, banks may end up investing too much, while in bad times, they may not invest enough. Overall, the secondary loan market can make the ups and downs of the economy more pronounced for banks.