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The people who bought homes in 2000’s that they couldn’t afford were acting irrationally, too. It’s easy to dismiss this and think “wow these people are dumb, s
by gk1 8y ago
The people who bought homes in 2000’s that they couldn’t afford were acting irrationally, too. It’s easy to dismiss this and think “wow these people are dumb, serves them right...” (my first reaction), but then I think: wait, these are just a few examples they found who are willing to share their story. How many people are out there defaulting on their loans that we don’t know about?
- foobarian 8y agoWhy do you say they were acting irrationally? They were broke and they saw they could still live in a 1/2M house--sounds pretty rational to me, especially if you can just drop the debt via bankruptcy. With colleges, there is a nasty effect that student loans are inflating tuition prices and punishing the financially responsible people who save money for tuition. It's almost more rational to make sure to have no savings and benefit from the free government money.