And what will the banks do with all this collateral?
When that supposedly happens everyone will be broke, so who are they going to sell it to and make money?
The last thing banks want is to foreclose on a loan and be saddled with a lot of stuff that they need to sell out.
Remember the subprime mess and all the houses the banks repoed? They couldn’t wait to get rid of them, and had a hell of a time doing so even at bargain prices.
I know it’s in vogue to bash the evil Feds, but do with something that makes sense.
What good would it do to be rich if 8 billion people wanted to kill you?
If this massive foreclusure were to occur, who exactly would they expect to execute the tens of millions of evictions? I couldn’t even get the city and police to execute my pre-covid judicial eviction. Banks aren’t set up for such collateral collection management and fire sale liquidation for pennies on the dollar. This is fantasy.
bump
But he thinks central banks are a good thing- they just need to be run by the government.