patrick.net

I dont see how they can force people to pay; what are they going to do, force everyone out of their home?

I've had the same fantasy, if something like this was pulled off on a large enough scale, banks wouldn't last a month.

Theoretically, at that point, you are just squatting in a house. I'm sure that a few renters would join you in there. Maybe you could hire a guard to keep them out - or just start a commune.

At the core, the U.S. Dollar would be completely worthless & our entire economy would crumble due to the way our fractional reserve banking system works. It only works if there are only a small % of deadbeat debtors.

http://en.wikipedia.org/wiki/Fractional-reserve_banking

ApocalypseFuck (you now the guy that tells us to plant potatoes and learn how to kill with your bare hands) is the only one prepared for such a scenario :)

Its a crazy what if.

What you should ask is 'what is EVERYONE UPSIDE DOWN on a mortgage stopped paying?' which is what is/will happen.

The answer is what you see now.
Endless free money for banks (borrow at ZIRP, lend at 5% for mortgage and 30% for credit card) + fictional accounting practice(FASB 157?) with no accountability
free $ for unemployed to pay mortgage up to 50k worth($ for banks).
Loan mods
special programs to rent to defaulted loanowners
endlessly postponed foreclosures (free house....until the sheriff shows up....he may never in many cases)

Its worth repeating all the insane bailouts every time you can.

Most people are NOT aware the feds are printing $ to give your niehbor who works under the table (and may make more than you...no way to tell) a 2% loan mod -at your expense partially - while you struggle to make the full mortgage payment.

You would think people would be so angry at this Obama could get impeached BUT the majority wants this and in fact wants MORE bailouts I guess.

Clinton got nearly impeached over a bj. (I guess if thats the major policitacl issue then times are pretty damn good!)

"It will really show these bankers who’s the boss, when they are left with a bunch of wood and brick. Would the government step in and make people pay their mortgage?"

Dont bother going to the bank to cash out any money from your account... wont be there.

thomas.wong1986 says

Dont bother going to the bank to cash out any money from your account… wont be there.

FDIC insured baby!

ChrisLA says

FDIC insured baby!

Only so much, but not enough to cover individual bank accounts and certainly not the many employers, and many other institutions, who have a checking account with the banks, well above the limits, to cover vendor bills and payroll. If the crap happened .. not pretty.