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All those mortgages are wrapped into bonds. No mortgage payment, bonds can't pay. It's a default. Or haircut. Those bonds in turn are people's retirement incom
by cmurf 6y ago
All those mortgages are wrapped into bonds. No mortgage payment, bonds can't pay. It's a default. Or haircut.
Those bonds in turn are people's retirement income. It doesn't just end at a bank.
- supertrope 6y agoThen the Federal Reserve buys MBS (mortgage backed securities). Or we bail out banks again. So eventually we all end up paying the corner store's rent through taxes and inflation?