Post #4095093
2026-07-25 10:46 UTC
That's because mortgages are *secured*: they are backed by deeds for the homes the borrowers own(ed). If a borrower goes bust, the lender can repossess their house or apartment and sell it to recover the loan amount.
Now, the finance sector *did* repossess a fuckton of houses after the crash.
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Replies (1)
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@pluralistic@mamot.fr 2026-07-25 10:46
Foreclosure and eviction became official policy: Treasury Secretary Timothy Geithner told Obama that a wave of foreclosures was necessary to "foam the runways" for the banks, so Obama encouraged banks to foreclose on their loans, rather than restructuring them so that Americans could keep their homes: https://wallstreetonparade.com/2012/08/how-treasury-secretary-geithner-foamed-the-runways-with-childrens-shattered-lives/ 12/