If OWS does this often enough to the point it becomes expected by debtors (i.e. "I won't pay because maybe I'll win in the OWS debt lottery"), wouldn't that in effect reduce the number of people that would actually pay back the $14k? And assuming it does have a global effect that should depress the market value of distressed debts further, right?
How can OWS depress the probability that creditors will get their money back enough so that the cost of buying debt becomes cheaper?
At the point that OWS is buying the debt it has likely already effected the individuals credit record and score which would make it much more difficult for the person to get additional credit for some number of years.
Moral hazard for private debtors, in effect? It's interesting, but OWS would need to be buying a LOT of debt for it to have an effect. It's also quite a bad trade from the point of view of the debtor: if OWS doesn't buy their particular obligation, they are in a world of trouble.
If OWS does this often enough to the point it becomes expected by debtors (i.e. "I won't pay because maybe I'll win in the OWS debt lottery"), wouldn't that in effect reduce the number of people that would actually pay back the $14k? And assuming it does have a global effect that should depress the market value of distressed debts further, right?
How can OWS depress the probability that creditors will get their money back enough so that the cost of buying debt becomes cheaper?