SK – I used the term reckless in the context of homebuilders, which are huge beneficiaries of this policy. You are correct of course that some losses were not due to “recklessness” as such, but that doesn’t change the argument.
Let’s look at those other non-bubbly industries that have suffered. Within each of them, some were more careful than others. Some did the analysis and saw the damage that could potentially be done by a housing bubble burst. Some didn’t. In any given industry, there is a spectrum of good forecasting -> bad forecasting and caution -> less caution. This policy, by its nature, disproportionately rewards those who were less cautious in the good times, and whose forecasts were less accurate, than their rivals.
So yeah, reckless certainly doesn’t apply to everyone here, but it does reward risk taking at a time when people shouldn’t have taken risk, as well as rewarding lack of forecasting of and preparation for the downturn. That said, the reckless are the ones who are helped the most by it.
Whether you use the word reckless or not, this is most definitely not a “level playing field” situation (which was my argument to begin with).
