Rolling Jubilee opinions

[G-Megas-Doux]

I'm a little surprised not to see a running topic on this already here but for those who dont know. There is a new player in debt relief.

http://rollingjubilee.org/

These guys purchase bad debts wholesale from lenders like a debt collector does however instead of collecting the money they wipe out the debt.

It's only purchasing private debt in the USA at the moment and relies on donations as a charity would. Information as to what they do is on their website.

Why I'm posting is that if this is successful some people will win a debt lottery and others will suffer collection agencies and their methods. The lenders batch the debt they want to sell so no buyer has a choice in whos debts they purchase. The cancelling of debts is purely random and thus no measure worthyness is used between feckless and deserving.

It also is an unfair system. Either all debt should be collected through debt companies or forgiven in equal measure.

Does this under cut the morality of paying your debts?
Is this just because of an unfair system that forces people into debt and slavery to pay bills?

Is debt the stick and riches the carott that drives the engine of free society?

I just wonder what other peoples opinions are. Personally I think it is good for USA but I wonder how somethig applied to more socialist countries would be considered. I'm open to opinions if anyone thinks this is bad in the long term.
Will this change the national business model of capitalism in any way?

[Big War Bird]

It is no different in spirit than any other charitable activity.

Does this under cut the morality of paying your debts?

No. Lenders sell bad debts because they figure they have little chance of recovering their money themselves. It is in their eyes making the best of a bad situation. The new owner of the debt is free to do what he likes with it, including forgiving it.

Is this just because of an unfair system that forces people into debt and slavery to pay bills?

Last I checked there was only one thing anyone held a gun to a person's head and made them buy, and that is medical insurance. Thank you coffee fetcher.

Is debt the stick and riches the carott that drives the engine of free society?

Free exchange of goods and services and collective action to produce those goods is what the economy is based on. Debt is only a part of the picture and this charitable forgiveness of debt doesn't undermine it at all.

Will this change the national business model of capitalism in any way?

In so much as it adds to the pool of wealth to buy down debt it puts money back into the lending and banking system.

[G-Megas-Doux]

True but it is different in what it is doing. There is the greater economic picture that it could have an effect on. Also politicly it could lead to greater calls for debts to be wiped off as it is only choice that keeps debts going. However this choice also underpins the whole of capitalism.

[Big War Bird]

See my more complete answer above.

[Adar]

A Lannister always pays his debts...

[G-Megas-Doux]

Like the more complete answers.

Does anyone think this would encourage greater delinquency for a chance to win the debt lottery?

Alternately and more likely does anyone think that debt companies are going to compete harder in bids for the debts forcing rolling jubilee to pay more for debt and thus be less effective?

Does anyone think that there will be debt jubilees in other nations?