[patientrenter]

I don’t think that people who have spent a lifetime believing that doing the right thing pays off – or at least, pays off enough – will all change their behaviors overnight. But as they plan and make their moves over the next 10-20 years, they will remember who got massive breaks, and who paid for those breaks.

It will take quite a bit of time, though, for all that to play out, and for people to change habits of a lifetime in response. People who borrowed vast amounts of money and didn’t repay their loans got massive breaks, but the investment losses from the failure to repay haven’t been felt by the ultimate beneficiaries of those investments. Current and future pensioners relying on pension funds that invested in mortgages have yet to feel the losses. Owners of life insurance policies and annuities from companies that invested in mortgages have yet to feel the pain. To the extent that mortgage loan forgiveness will be engineered by inflation, then all those who saved more in dollars than they borrowed will be hurt. To the extent that bailouts are granted, future individual taxpayers will pay.

Few of these effects have been felt yet by individuals, much less reflected on. So far, only some intermediary institutions that invest our money have felt much impact. But the real impact will be on individuals, and it will be felt for many years. When that impact has been fully absorbed, I think you will see significant changes in behavior. So far, all we’ve seen are the giveaways. When we feel the takeaways, people will change.

[patientrenter]

I don’t think that people who have spent a lifetime believing that doing the right thing pays off – or at least, pays off enough – will all change their behaviors overnight. But as they plan and make their moves over the next 10-20 years, they will remember who got massive breaks, and who paid for those breaks.

It will take quite a bit of time, though, for all that to play out, and for people to change habits of a lifetime in response. People who borrowed vast amounts of money and didn’t repay their loans got massive breaks, but the investment losses from the failure to repay haven’t been felt by the ultimate beneficiaries of those investments. Current and future pensioners relying on pension funds that invested in mortgages have yet to feel the losses. Owners of life insurance policies and annuities from companies that invested in mortgages have yet to feel the pain. To the extent that mortgage loan forgiveness will be engineered by inflation, then all those who saved more in dollars than they borrowed will be hurt. To the extent that bailouts are granted, future individual taxpayers will pay.

Few of these effects have been felt yet by individuals, much less reflected on. So far, only some intermediary institutions that invest our money have felt much impact. But the real impact will be on individuals, and it will be felt for many years. When that impact has been fully absorbed, I think you will see significant changes in behavior. So far, all we’ve seen are the giveaways. When we feel the takeaways, people will change.

[patientrenter]

I don’t think that people who have spent a lifetime believing that doing the right thing pays off – or at least, pays off enough – will all change their behaviors overnight. But as they plan and make their moves over the next 10-20 years, they will remember who got massive breaks, and who paid for those breaks.

It will take quite a bit of time, though, for all that to play out, and for people to change habits of a lifetime in response. People who borrowed vast amounts of money and didn’t repay their loans got massive breaks, but the investment losses from the failure to repay haven’t been felt by the ultimate beneficiaries of those investments. Current and future pensioners relying on pension funds that invested in mortgages have yet to feel the losses. Owners of life insurance policies and annuities from companies that invested in mortgages have yet to feel the pain. To the extent that mortgage loan forgiveness will be engineered by inflation, then all those who saved more in dollars than they borrowed will be hurt. To the extent that bailouts are granted, future individual taxpayers will pay.

Few of these effects have been felt yet by individuals, much less reflected on. So far, only some intermediary institutions that invest our money have felt much impact. But the real impact will be on individuals, and it will be felt for many years. When that impact has been fully absorbed, I think you will see significant changes in behavior. So far, all we’ve seen are the giveaways. When we feel the takeaways, people will change.

[patientrenter]

I don’t think that people who have spent a lifetime believing that doing the right thing pays off – or at least, pays off enough – will all change their behaviors overnight. But as they plan and make their moves over the next 10-20 years, they will remember who got massive breaks, and who paid for those breaks.

It will take quite a bit of time, though, for all that to play out, and for people to change habits of a lifetime in response. People who borrowed vast amounts of money and didn’t repay their loans got massive breaks, but the investment losses from the failure to repay haven’t been felt by the ultimate beneficiaries of those investments. Current and future pensioners relying on pension funds that invested in mortgages have yet to feel the losses. Owners of life insurance policies and annuities from companies that invested in mortgages have yet to feel the pain. To the extent that mortgage loan forgiveness will be engineered by inflation, then all those who saved more in dollars than they borrowed will be hurt. To the extent that bailouts are granted, future individual taxpayers will pay.

Few of these effects have been felt yet by individuals, much less reflected on. So far, only some intermediary institutions that invest our money have felt much impact. But the real impact will be on individuals, and it will be felt for many years. When that impact has been fully absorbed, I think you will see significant changes in behavior. So far, all we’ve seen are the giveaways. When we feel the takeaways, people will change.

[patientrenter]

What happens at either end depends entirely on how much money the govt pumps in. Right now, trillions are being pumped into the low end. Will that be extended to the high end? Maybe. Will it be withdrawn from the low end? Fat chance.

[patientrenter]

What happens at either end depends entirely on how much money the govt pumps in. Right now, trillions are being pumped into the low end. Will that be extended to the high end? Maybe. Will it be withdrawn from the low end? Fat chance.

[patientrenter]

What happens at either end depends entirely on how much money the govt pumps in. Right now, trillions are being pumped into the low end. Will that be extended to the high end? Maybe. Will it be withdrawn from the low end? Fat chance.

[patientrenter]

What happens at either end depends entirely on how much money the govt pumps in. Right now, trillions are being pumped into the low end. Will that be extended to the high end? Maybe. Will it be withdrawn from the low end? Fat chance.

[patientrenter]

What happens at either end depends entirely on how much money the govt pumps in. Right now, trillions are being pumped into the low end. Will that be extended to the high end? Maybe. Will it be withdrawn from the low end? Fat chance.

[patientrenter]

I acknowledge that there are valid points to be made on both sides of this argument.

But I am ticked off by people pretending that there isn’t often a selfish motive when arguments are made that it’s OK to walk away from repaying your debts. Let’s face it, not many of us think of ourselves as investors who loaned large amounts of our own personal money to people overpaying for homes, and might lose a $1 of our own money for each $1 that’s not repaid. But lots of us are, or plan to be, homeowners. As homeowners, it would be nice if we could avoid repaying our mortgage, and feel no pangs of conscience or the pain of social opprobrium. We may never have done it, and we may not have an opportunity to do it now, but we wouldn’t mind having the option to do it in the future. “It’s OK if I steal a little, isn’t it”. My answer is No.

[patientrenter]

I acknowledge that there are valid points to be made on both sides of this argument.

But I am ticked off by people pretending that there isn’t often a selfish motive when arguments are made that it’s OK to walk away from repaying your debts. Let’s face it, not many of us think of ourselves as investors who loaned large amounts of our own personal money to people overpaying for homes, and might lose a $1 of our own money for each $1 that’s not repaid. But lots of us are, or plan to be, homeowners. As homeowners, it would be nice if we could avoid repaying our mortgage, and feel no pangs of conscience or the pain of social opprobrium. We may never have done it, and we may not have an opportunity to do it now, but we wouldn’t mind having the option to do it in the future. “It’s OK if I steal a little, isn’t it”. My answer is No.

[patientrenter]

I acknowledge that there are valid points to be made on both sides of this argument.

But I am ticked off by people pretending that there isn’t often a selfish motive when arguments are made that it’s OK to walk away from repaying your debts. Let’s face it, not many of us think of ourselves as investors who loaned large amounts of our own personal money to people overpaying for homes, and might lose a $1 of our own money for each $1 that’s not repaid. But lots of us are, or plan to be, homeowners. As homeowners, it would be nice if we could avoid repaying our mortgage, and feel no pangs of conscience or the pain of social opprobrium. We may never have done it, and we may not have an opportunity to do it now, but we wouldn’t mind having the option to do it in the future. “It’s OK if I steal a little, isn’t it”. My answer is No.

[patientrenter]

I acknowledge that there are valid points to be made on both sides of this argument.

But I am ticked off by people pretending that there isn’t often a selfish motive when arguments are made that it’s OK to walk away from repaying your debts. Let’s face it, not many of us think of ourselves as investors who loaned large amounts of our own personal money to people overpaying for homes, and might lose a $1 of our own money for each $1 that’s not repaid. But lots of us are, or plan to be, homeowners. As homeowners, it would be nice if we could avoid repaying our mortgage, and feel no pangs of conscience or the pain of social opprobrium. We may never have done it, and we may not have an opportunity to do it now, but we wouldn’t mind having the option to do it in the future. “It’s OK if I steal a little, isn’t it”. My answer is No.

[patientrenter]

I acknowledge that there are valid points to be made on both sides of this argument.

But I am ticked off by people pretending that there isn’t often a selfish motive when arguments are made that it’s OK to walk away from repaying your debts. Let’s face it, not many of us think of ourselves as investors who loaned large amounts of our own personal money to people overpaying for homes, and might lose a $1 of our own money for each $1 that’s not repaid. But lots of us are, or plan to be, homeowners. As homeowners, it would be nice if we could avoid repaying our mortgage, and feel no pangs of conscience or the pain of social opprobrium. We may never have done it, and we may not have an opportunity to do it now, but we wouldn’t mind having the option to do it in the future. “It’s OK if I steal a little, isn’t it”. My answer is No.

[patientrenter]

The original poster made a downpayment of 20% years ago. She won’t be doing that again, I’d guess. Seeing how much better the people who put no money down are doing teaches us all a lesson. Formerly responsible people won’t behave so responsibly from now on. But our political leaders couldn’t give a damn about that consequence of their actions.

[Author]

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