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And they did! At least in California, that's the news here. Overleveraged people got a lesson but will be made whole it seems. And every houseowner massively pr

And they did! At least in California, that's the news here. Overleveraged people got a lesson but will be made whole it seems. And every houseowner massively profited from house prices appreciation. What more can you ask for? Have your cake and eat it too.

deleted 5y ago
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gameman144 5y ago
Overleveraged renters can't ask for more, but renters who paid their bills on time and responsibly forewent other spending are really taking a bath here, and could ask to not be penalized for acting responsibly over the past 18 months. This is a textbook case of a moral hazard.
- ipaddr 5y ago
  They are not being punished. Just because some other group got a benefit doesn't mean the first group are taking a bath. If you see someone steal something you shouldn't think you have to steal too because others will have benefit you don't. It sounds less like moral hazard and more like jealousy. The people who didn't pay took a risk, ruined relationships with management. It will probably follow them around to credit reports and to the next place.
  - gameman144 5y ago
    > If you see someone steal something you shouldn't think you have to steal too because others will have benefit you don't. This isn't the situation, though. The situation is more like the government announced that theft of Playstations wouldn't be prosecuted; my friend stole a Playstation, I paid for my Playstation, and at the end of the day the government stepped and paid of my friend's Playstation off for him. You're totally right that the government isn't punishing me for having paid for my Playstation. But economically I am being penalized for having not stolen my Playstation. When the responsible thing to do and the economically advantageous thing to do are at odds, it's not far-fetched to expect fewer people doing the responsible thing.

deleted 5y ago

[deleted]

gameman144 5y ago

Overleveraged renters can't ask for more, but renters who paid their bills on time and responsibly forewent other spending are really taking a bath here, and could ask to not be penalized for acting responsibly over the past 18 months. This is a textbook case of a moral hazard.

ipaddr 5y ago
They are not being punished. Just because some other group got a benefit doesn't mean the first group are taking a bath. If you see someone steal something you shouldn't think you have to steal too because others will have benefit you don't. It sounds less like moral hazard and more like jealousy. The people who didn't pay took a risk, ruined relationships with management. It will probably follow them around to credit reports and to the next place.
- gameman144 5y ago
  > If you see someone steal something you shouldn't think you have to steal too because others will have benefit you don't. This isn't the situation, though. The situation is more like the government announced that theft of Playstations wouldn't be prosecuted; my friend stole a Playstation, I paid for my Playstation, and at the end of the day the government stepped and paid of my friend's Playstation off for him. You're totally right that the government isn't punishing me for having paid for my Playstation. But economically I am being penalized for having not stolen my Playstation. When the responsible thing to do and the economically advantageous thing to do are at odds, it's not far-fetched to expect fewer people doing the responsible thing.