[mrg]

Originally Posted by netwrkranger

Most interesting ..... note the amount of "spin" contained within the article. Seems the "problem" is growing for banks and the court system .

http://www.bloomberg.com/apps/news?p...=patrick.n et

Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish
By Bob Ivry

When banks originally made the loans they used people's money from pension funds and savings accounts and they should be allowed to foreclose the loan as quickly as possible before the property depreciates in value any more,'' Saft said.

I would like to see him prove that one under oath.

Modern Money Mechanics

Of course, they do not really pay out loans from the money they receive as deposits.

If they did this, no additional money would be created.

What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts.

Loans (assets) and deposits (liabilities) both rise by $9,000.

Reserves are unchanged by the loan transactions.

But the deposit credits constitute new additions to the total deposits of the banking system.

Modern Money Mechanics p.6