3 ms·
So students who took huge loans get scot free but a single mother who took a loan to support her two children will be left with her debt. I see no problem with
by richardknop 8y ago
So students who took huge loans get scot free but a single mother who took a loan to support her two children will be left with her debt. I see no problem with that. Moral hazard and all that. Let’s just forgive all debt, what could go wrong.
- ethbro 8y agoIn the context of this question, my response was about a hypothetical recapitalization of banks if the student loan bubble became untenable.
- richardknop 8y agoMy point about moral hazard stays the same and unaddressed.
- ethbro 8y agoIn this hypothetical, as with the recent financial crisis, you're weighing moral hazard against frozen credit markets and failing banks. Sometimes, one must pick the lesser of two evils.