Banking Collapse Simplified
I’ll use a fictitious name for this example, ‘First National Bank of Mike’.
- I’m going to give out loans to unqualified people that want to buy a home, because house and land prices will always rise. 😉
- I’m going backstop these loans with the support of federal government loan programs, Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation).
- Then I’m going to sell shares of the debt to people looking to make a quick dollar.
- Following that, I’ll sell insurance guaranteeing there won’t be a massive loan default.
- When the whole thing collapses, I’ll ask my friends who previously received campaign money, for a bailout.
What are the odds the established political base are going to refuse me?
Res ipsa loquitur.