Quote:
Originally Posted by dar512
My mortgage is now owned by J.P. Morgan Chase & Co.
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Your mortgage, from your perspective, is completely irrelevant. Your mortgage is now something like a bond - traded like any equity. If Washington Mutual went down, does your mortgage disappear? Of course not. Either the government buys WaMu, or makes a special deal for other company (JP Morgan) to take over your mortgage, or it is sold to another bank, or it is bought by foreigners. Yes, then is where the real rescue is coming from. Even if the government takes over a bank, the money to do so comes (in part or whole) from Treasury Bonds sold to foreign nations.
Remember, economic forces are taking revenge. The bills are coming due. We must pay the rest of the world OR borrow more for assets that were mostly fictions. Bean counter types making money without even looking at the underlying product. That does not affect anyone's existing mortgage. Bankruptcies are so good because the assets (ie mortgages) are sold to others who will be more responsible.