Quote:
Originally Posted by Synchro909
What makes those mortgage derivatives more disasterous over there than here is that a mortgage holder over there can just send the keys to the bank and walk away. Here, if they can't make their payments, the house in repossessed and sold. If that doesn't cover the mortgage, the balance still owed by the customer and the banks close in on your other assests. That's a big part of the reason why we had no bank failures during the GFC and our biggest 4 banks were 4 out of about 7 banks world wide to hold their AAA+ rating.
Never the less, it was a nasty time. I was in Canada and the US when all that started and couldn't do anything about my investments till I got home. All I could do was watch - and cry!
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I rode the construction wave from the late 80's till 2008,fixing equipment as silicon valley was being built..go go times,no one thought it would end..the only good thing I got out of it was a pension,the operating engineers contracts were going up,we'd vote our raises to our pensions..yearly credits as high as 250 bucks,a credit is the amount our pension would go up by the month when drawn...a buddy with unbroken service began pulling $8800 a month at 55..