Mohacsy's Safe Portfolio Member Forum

[RichardTC]

I agree on both counts: inflation is not a solution to the debt crisis and the most responsible debters are paying for irresponsible debters actions. Unfortunately, the US seems hell bent on inflating their way out of debt. At least that's my take on it.

With regard to the consumer debt crisis, Elena and I talked about this the other week. We're in agreement that irresponsible borrowers are basically going to be a free pass if they go into bankruptcy now. It will all get lumped in with "the economy went into the tank, I lost my job and housing prices plummeted" story. In other words, it won't be their fault. While I don't favor punishing someone even more after they've lost everything, there has to be some disincentive to irresponsible borrowing / some mechanism to prevent them from doing it in the future. There have to be consequences for irresponsible behavior. Letting deadbeat borrowers refinance at 1-2% rates encourages defaults. I understand why Congress is pushing for reduced rates/lax repayment terms, but they're rewarding deadbeat behavior. It's absolutely sickening.