Quote:
Originally Posted by Damien
The money didn't exist in the first place. A lot of it were mortgages that weren't worth that they were labeled as being worth. Money can disappear if the value of something declines, it's not all backed by hard currency.
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So the money never existed but the Government propped up the banks because they'd lost the money that never existed anyway.
You on cookooland Damien?
Consider this. I have a property you want to buy so you get a mortgage for it, contracts are exchanged and I am paid by whoever you organised the mortgage with.
Just because you don't see the money doesn't mean it doesn't exist.
Money cannot "disappear" it may become less valuable but it still exists somewhere.
Like it or not, someone somewhere made billions out of the sub prime market and stitched up the banks. We have had to pay for it though as usual.