Mortgages are accumulated debt that homeowners owe to the bank. That’s called debt. Right?
Some of the mortgages in ‘08 were garbage backed by Fannie and Freddy and the ratings agencies. The banks and investment houses knew this. They package this crap and sold it as performing when it wasn’t. Watch The Big Short.
The SEC and Fed were asleep at the switch. This current deficit debt funding is there for everyone to see. The Fed just did three straight days of funding successfully. When that doesn’t go well we are screwed. Do you understand how this all works?
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