Quote:
Originally Posted by onewhippedpuppy
Maybe if they brought back debtors prison people would take contracts more seriously.
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Ironically, it is you who are not taking contracts seriously.
In a free society, which respects and enforces contracts, debtor's prisons are not necessary. The parties are free to contract with each other, allocate risk, and price risk, freely.
People are free to do whatever they want, including breaching the contract. That is ok, because the nonbreaching party has already freely negotiated and included his breach remedies in the contract. If he has acted wisely, particularly in a secured loan situation, his contract should fully protect him.
If, for example, banks acted reasonably in analyzing their security, they never would have made no money down loans on bubble priced houses. Any idiot could see the would be grossly undersecured. And that when that happened, many borrowers would exercise their right to simply walk away (and suffer whatever consequences flow from it).