Can Anyone Please Explain What is Going on With this Graph and Why it is Bad? Thanks
(media.patriots.win)
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I understand that my friend knows why this is bad. I have no clue what the graph means. I haven’t bought a home yet so maybe that’s why
Ah, I c. Ok, well, the general idea is that when you borrow money for a mortgage, the bank issues the mortgage. But the banks do not want to take the risk, so they repackage the mortgage as a Mortgage Backed Security, which is a complicated way of saying the bank is selling the cashflow generated by the mortgage, you follow? The graph is showing that no one trust the cash flow to continue, so they are selling off their MBS', because they are worried their money is not safe. The only buyer is the Fed. That means the Government owns all the houses in reality, not the people paying the mortgage. I hope that makes sense.
I see I see... thank you I understand. so basically if we were to take this thing to straight communism, the FED would already be in a position to seize what they already own... interesting
they don't even have to seize it. They already technically own it. If people cannot make their payments, the house gets sold in an asset disbursement, and those who have access to capital can buy the properties for pennies on the dollar. If the gov creates a new digital currency and gives it to certain groups, you have basically just orchestrated the biggest wealth transfer in the history of mankind while consolidating power among minorities and stripping it away from your political enemies.