From time to time landlords have to go bankrupt after taking too much leverage. If landlord’s mortgage is risk-free, it means that the landlord is leveraged at

From time to time landlords have to go bankrupt after taking too much leverage. If landlord’s mortgage is risk-free, it means that the landlord is leveraged at the expense of people who don’t have home — which is rather unfair economically, and leads to more inequality. Wealthy risk-free landlords get passive income and re-invest it into more leveraged assets, poor people pay taxes to bail-out their landlords.