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The bank sells the mortgage to Fannie Mae. Fannie puts it into a mortgage-backed security. Your life insurance company or pension plan buys that mortgage-backed
by massysett 7y ago
The bank sells the mortgage to Fannie Mae. Fannie puts it into a mortgage-backed security. Your life insurance company or pension plan buys that mortgage-backed security. So it comes right back to you. There’s just no good way to compensate for weeks or months of economic activity that just doesn’t happen.
- viklove 7y agoBasically our whole economy is based off of BS IOU's and the moment there is any problem in the world the whole system comes crashing down around us. Decades of economists and investors building layers and layers of obfuscated financial abstractions so they can get rich finally has its consequences. I guess it's been a while since we've eaten the rich. It was a long time coming.