This is called a hard landing:



Borrowed 10 million from the bank, the house price suddenly drops to 1 million, borrower A gets laid off and loses his job, runs to the rooftop and jumps "biu" down, news reports: mortgage death. The bank faces a 10 million bad debt.

This is called a soft landing:

Borrowed 10 million from the bank, the house price drops to 9 million, borrower A sells the house for 9 million, still owes the bank 1 million, grits his teeth and works hard to slowly pay it back. Borrower B takes over the house with a 9 million loan, then the house price drops to 8 million, borrower B sells the house for 8 million, owes the bank 1 million, continues working hard to slowly pay it back. This cycle repeats, borrowers A, B, C, D, E, F, G collectively support this downward trend, the bank doesn't face bad debt, but gains N hardworking laborers.
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