Originally Posted by
stimpy
You are missing the fact that as small businesses and homeowners with mortgages begin to default on their loans, the banks will be heading in the direction of collapse. I think we are a long way from that in the US, but it is not the case in many other countries. When the financial system gets close to collapse, even if in just one region of the world, that is when the cure is truly worse than the disease.
Didn't miss that just didn't mention that part of the problem. Banks have reserves set aside to manage loan losses and many mortgages have insurance to insulate the lender to some degree along with other protections. Then there are the senior officers of companies that have been stuffing their pockets with extreme salaries instead of taking steps to protect their companies from a once in a lifetime event. Many seem OK with the small business owner or homeowners taking a hit but Katy bar the door when it's the banks or big business.
That rainy day we've all been warned about is here!