Wow. I cannot believe all the support for deadbeats on this thread.
Don’t get me wrong, I can see why they do it, but to think that so many apparently think it is ethical…I am very surprised.
It is not a “victimless” action. Those who were responsible and stayed out of debt they couldn’t repay are being wronged.
New (potentially more responsible) buyers are being priced out of the market because they don’t want to overpay or stretch their finances too much (which is exactly why all these FBs are in the position they’re in!).
Savers are getting 0-2% on their savings while asset price inflation screams through the roof — their purchasing power is deteriorating rapidly.
Additionally, we will be paying for these bailouts in the form of higher taxes, fewer/lower-quality services, and lost purchasing power for many decades to come, IMHO.
Finally, we will have a problem with moral hazard from here on out. Everyone (individuals and corporate entities) will now feel entitled to have the govt (OTHER TAXPAYERS) cover their losses whenever they make a financial mistakes.
These deadbeats (borrowers AND lenders who refused to do due dilligence) are parasites, not victims.
