Home › Forums › Other › on topic: norm assymetry › CR ran a piece on it as well.
CR ran a piece on it as well. I’d say this is another pillar in keeping home prices high, along with GSE support and artificial scarcity imposed by banks. Then again, if people started walking en masse, they just go into the shadow inventory.
http://www.calculatedriskblog.com/2010/01/cre-and-moral-and-social-constraints-to.html “[P]eople who know someone who defaulted are 82% more likely to declare their intention to do so.” And “as defaults become more common”, there is a “contagion effect that reduces the social stigma associated with default”.
