Taking and Paying for Risk

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I'm sure that at one time or another, you have put a quarter into a slot machine only to lose it. And perhaps, a few of you might have won the bet once. That said, I know that you all will be able to understand this post.

Suppose that one of you convince me to give you a loan because you think I'm wealthy, and you promise to pay me back in time. I go along with it, and take your loan and stuff it into a slot machine, and you hit it big. With your winnings, you can't wait to pay me back as promised, but you keep the winnings. Should I expect anything more?

Now, suppose you lose all of the loan money to that slot machine. So, you inform me of your misfortune and expect me to forgive the loan because I am still wealthy, and you are broke. Should I expect that?

Sound familiar? Well, that is what is going on all around us today. In Those Days, people did everything that they could to repay their loan obligations, whether or not their loans led to fortunes or misfortunes. Not so any more.

Today, people still make fortunes by using loan money to invest, build a business, or buy a home. And they repay those loans when things go right for them. But when the loan money is lost, for what ever reason, they expect the loan to be forgiven forcing someone else to eat their loss.

Every day, more and more people are walking away from their loan obligations. It's contagious because they see others do it. They obtain a loan and buy a house or business, but when the market devalues, or the busines fails, they refuse to repay the loan, even though they are financially sound and can make their loan payments. Some even by a vehicle, drive it to hell and back, then refuse to pay the loan, leaving some one else to eat the loss. Makes financial sense, but it sure is unethical to say the least.

They expect the loans to be forgiven, and the government has absorbed much of their losses, because they think the government is wealthy. Well, the government only takes it from you and me.

Now, would they pay more than the loan amount if they profitted from the loan? I don't think so. I didn't. I re-invested the real estate profits I made from my loan into the Thought Dock. But that is because I pride myself with honesty and integrity.
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