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If Bob taking a mortgage is less risky why are we even having a discussion about Bob's risk?
by Teever 5y ago
If Bob taking a mortgage is less risky why are we even having a discussion about Bob's risk?
- SilasX 5y agoBecause the discussion was centered around the decision of whether policymakers should create said risk by reversing previous policies. The risk came from the choice of policy, not from the environment Bob was originally playing in.
- CogitoCogito 5y agoIsn't a change in policy just another factor in overall risk? Why should anyone assume that policy will not change?
- ivalm 5y agoImplied volatility on buying a house is lower than on renting, we are discussing policy changes that cause realized volatility to be different. If you use the government to change the market then you cant claim “free market.”