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>At the very least you are screwing the owners of the mortgage who will have to write off lots of loans as Bobs everywhere walk away from the underwater mortgag
by xenihn 5y ago
>At the very least you are screwing the owners of the mortgage who will have to write off lots of loans as Bobs everywhere walk away from the underwater mortgages
Yes, that's the point...
>But also it significantly limits Bob’s options in life. They can no longer refinance to repair the roof, they can’t move to a different city for a better job, etc.
Bob knew the risks.
- lumost 5y agoIf everyone is a bob it’s the banks problem rather than a bob problem. Within the legal system remedies Bobs everywhere are going to bankrupt. Banks can arrest the bankruptcy by changing the legal system, and Bobs everywhere can change the legal system to make bankruptcy more lenient. At the end of the day a large portion of the population is not going to simply accept that they need to shoulder the losses for a bubble they didn’t make and had no perceived choice but to participate in. Particularly not when it occurs twice in two decades.
- xenihn 5y ago>At the end of the day a large portion of the population is not going to simply accept that they need to shoulder the losses for a bubble they didn’t make and had no perceived choice but to participate in. They (you?) don't have to accept it. That's not a factor at all. Your acceptance is not required.
- lumost 5y agoWho takes the loss is a matter of societal acceptance. There are many historic examples of societies clearing debts through jubilees, negotiated settlements, nationalization, revolution, and economic restructuring.