The economics of the situation suggests that if the first mortgage becomes more affordable, the existing risk exposure of all credit risk holders actually decreases. Moreover, to the extent that more widespread refinancing reduces the overall volume of distressed mortgages, it likely reduces pressures on house prices which would, in turn, lead to lower losses on sales of foreclosed properties across all mortgage portfolios.
In theory, and to a large extent in practice, production and distribution were determined by specific instructions -often in the form of state orders -- coming from the central planning agencies to the various different producing establishments, indicating from whom, and in what quantities, they should receive their raw materials and services, and to whom they should distribute their final outputs.