Quote from: criptix on February 17, 2015, 12:52:27 AM

Quote from: twiifm on February 16, 2015, 10:25:30 PM

Quote from: johnyj on February 16, 2015, 06:27:24 PM

Quote from: sidhujag on February 15, 2015, 06:16:12 AM

Great insight to infer mbs program to a tend towards owning all land.. However as all suuply is dried up and becomes unaffordable the whole country will default.. Why would the govt have incentive to do this? Or is it judt s byproduct of a malfunctioning system nearing its end? Its like askmg miners to collude so they can double spend.. Theres no incentive to break the network?

Is buying the mbs somehow a way to foot the bill for the interest on the outstanding loans via printing paper through selling treasury notes?

I think this inevitably leads to more and more assets get defaulted and bought up by the banks, and they might rent those house to you later and become the land lord of the whole country

Treasury note is just another name of debt, banks only buy debts nowadays (with money out of thin air), and eventually the whole country will be the debt slave of banks

This is not what happens. If you default your mortgage the bank takes possesion of your house but if the market is down they eat the loss. Banks don't want to sit in an inventory of houses nobody wants to buy. Often they'll sell it at auction at loss.

Banks don't want debt slaves they want a booming economy where they can create more loans

you should read up some more about the 2008 housing bubble, i think it will clear up a lot of things for you!

Please point out where I'm wrong. My friend is a house flipper and he routinely buys short sales. A lot of subprime borrowers just abandon their property if the mortgage becomes underwater.

Banks don't go around buying foreclosures, they are selling foreclosures at auction. Usually at a loss