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Correct. The bank, and the seller are. The seller has his money already. The bank created money out of nowhere to service that mortgage. To my point of view, I
by salawat 5y ago
Correct. The bank, and the seller are. The seller has his money already. The bank created money out of nowhere to service that mortgage.
To my point of view, I see exactly where the haircut makes the most sense.
- selcuka 5y ago> The bank created money out of nowhere This is the part most people don't know or understand. We should fix the banking system first. Only one entity should be able to print money, not all banks.
- montblanc 5y agoOne man's debt is another's asset. If the banks don't collect their mortgages they might collapse. Will I trust a bank to save my money if I knew their balance sheet is negative?
- vineyardmike 5y agoit is negative. Real banks run negative in practice (in USA).