Quote:
Originally Posted by jfman
A touching story of course of little comfort for mortgage holders whose debt was created out of thin air, rather than a transaction between their bank and any other, or a central bank.
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The licensed creation of money in order to finance a loan is less problematic than the subsequent selling on of packages of these debts until nobody quite knows what is where. We haven’t actually solved that structural weakness since 2008 - all we’ve really done is force the system to hoard enough real cash to plug the holes next time the dam starts to burst. And we won’t know whether the banks have actually done that, or just found a clever way to make it look like they have, until it’s too late.