Re:Croatia just canceled the debts of its poorest citizens
by carona on Monday February 02, 2015 @06:55AM
(#8983752)
I don't know the exact scenario in Croatia or Brazil;
In general, writing off loans sets a bad precedent. People would again take loans, and will want the Govt. to bail them out. I have seen these things happen in India. There were cases people took loans and were waiting for the next election, to get their loans waived off.
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Re:Croatia just canceled the debts of its poorest citizens
by cyphunk on Monday February 02, 2015 @07:09AM
(#8983786)
How is it that this logic is lost when it comes to cities and corporations that declare bankruptcy? While Detroit may spend a few years having trouble getting good loans I imagine GM (bailed out some years ago) is already able to claim low interest loans. And these are entities that were also bailed out.
Re:Croatia just canceled the debts of its poorest citizens
by tom_scrace on Monday February 02, 2015 @08:41AM
(#8984074)
I think you answered your own question didn't you? Those companies were 'bailed out'. The government didn't just wipe out their debts by fiat; it gave them money.