9 ms·
It's a nice analogy, but at least in the housing market you're equally likely to be a winner (sell before crash) as a loser (buy before crash).
by crabasa 11y ago
It's a nice analogy, but at least in the housing market you're equally likely to be a winner (sell before crash) as a loser (buy before crash).
- api 11y agoIs there a general principle here? Do loan subsidies lead to a condition in which the loan recipients are able to reap the benefits intended for loan originators through progressive inflation and risk transfer?
- noonespecial 11y agoI think what we've got here is a misalignment of the participants' roles courtesy of unintended consequences. The recipients have become the schools, deriving all of the benefits with no risk. The originators have escaped their traditional role as gatekeepers and risk takers. That leaves the students for all of the risk to concentrate on while they receive few of the benefits. Essentially becoming sharecroppers of their own minds.