Banks can’t weather it that easily. They’re levered up at least 10 to 1, in many cases more. If they’re levered 10 to 1 and expecting 5% mortgage payment, in

Banks can’t weather it that easily. They’re levered up at least 10 to 1, in many cases more. If they’re levered 10 to 1 and expecting 5% mortgage payment, in one year half their equity is wiped out, and in two years they’re insolvent. It gets worse... if the value of the mortgages goes down by 10% because people become worse credits, they become insolvent. This is why the govt is propping them up. (Same is she and solution in 2008)