“normally yes, but in a SHTF meltdown I’d rather owe the bank money (which I don’t) than have them owe me my own money. “your” money in the bank isn’t yours. you didn’t deposit it for safe keeping, you loaned it to them. when the bank fails, you’re one of hundreds/thousands of creditors. get in line and good luck.”
Mortgage:
If you owe on your house and the entire system goes to crap, will they still foreclosed on the house. I think they did in the Great Depression, the note will just be sold to another company. If you still owe on the Mortgage somebody will collect.
Fanni Mae Mortgages:
Would Fannie Mae just go under, I do not’t think anyone would buy Mortgage notes from Fanni Mae. Would those just disappear.
Bank FDIC:
I know the banks are FDIC insured $250K. Wonder how that would work if the Federal Government goes completely broke. Our money would be like the Confederate dollars. Very scary thinking about the FDIC failing to do it’s job. I think this is where Gold/Silver comes in.
I am not really sure how this will play out after writing above.
Sort of.
If I owe $100k on my house and there is any kind of a SHTF situation there is going to be huge inflation long before anyone can come to collect on that debt. The salary of a mechanic could go to $100k per week.
I shrug and pay the mortgage off.
I would far rather have $1M in debt and a plot of hard assets I bought going into that debt than no debt and no assets when a crunch comes...