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.

The Bernake would print more money.

increasing rate of mortgage defaults were one of the catalysts to the near financial collapse in 2008/2009.
100% rate of mortgage defaults means certain global financial collapse.

everything is built on confidence - if you loan a dollar, you're going to get it back.
if you loan a dollar and no one pays it back, no one loans any money.
credit markets freeze. no loans, means businesses stop.

Well, at least then we wouldn't be left holding the bag.

Oh, I just thought that I'd share. I went to my material yard to make a purchase the other day and I took notice of some really nice looking marble. I asked about it and I was told that it was for a school that's being built.

The architect hand picked over a 100k worth of Italian Marble and turned down the less expensive Chinese marble that was a tenth of the price. I've seen quite a few new schools continue to go up. The argument that is constantly waged is that the money is already in the system and if they don't use it, they'll lose it.

Well, in my opinion, when you don't need something you return it so that you may afford your prior obligations. Maybe they should lose it and maybe we'll be able to retain many of the good teachers, schools and programs.
Oh, for the record. Teachers have already been given notice that class sizes will be doubling to make way for those kids that are transferring from closing schools, or from other classes. Sports in the Inland Empire are being taken away as well.

Piss on the quality of education that everyone's been banging their heads about, because it's going to hell in a hand basket.

Now, why should we support the criminals that are stealing from us, left and right. Their robbing us in our sleep. It's a joke. If everyone made a statement about their concerns in the manner that best affected their reasoning, well, maybe then they would understand that they work for us and not the other way around.

I'm in support of this completely. We the people are constantly mislead by the corrupt politicians, bankers, pharma companies and the likes. Nobody listens to the people. They lead us to believe that they do, but they really don't. How many times have we been promised the world, only to be let down time and time again. We vote these bastards in office based on the dreams they promote while in the running and once they get elected, our dreams become nightmares that stab us in the back.

So, how best to make a statement. Well, this is the best idea yet. What are they going to do if everyone did the same? Hell, what could they do? Maybe we should start trading dirt instead of money. I'd like to see them take control of that one.

Might as well ask what would happen if Americans took all the top bankers and financial execs and hold them hostage until they stop influencing Washington for ill.

That's called a revolution, which takes not only a collective mentality but collective cooperation. We could also bring the fed. gov't. to its kness if we all quit paying our taxes, but the risk is sticking your individual neck out there with the possiblility that no one else will.