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Reader: WHAT WOULD THIS MEAN TO THE AVERAGE "REDNECK"?
The "simpliest" questions are mostly the most difficult ones:
What exactly would this mean to the average everyday red neck?
LOL!
What would happen to say.. a house payment? I have no gold to give. Would it
then mean, I no longer owe the bank? Would it then mean I never really
purchased it and do not own it? How would I pay child support?
I like reading VKD and often do via you and RMN and I thank you. But my legal
ease is not great.
Thanks
K
Indeed - not only a "redneck"-question. And not neccessary to laugh about it. Remember, not those are "stupid" who ask but those who NEVER ASK the questions. Let's give it a try:
Hadashi who can explain this by far better than me explains it this way:
If the FED is "down," the most immediate impact would be seen in the repurchase agreement/repo pool, the mechanism by which the Treasury's Working Group on Financial Stability (sic) AKA "Plunge Protection Team," keeps the Dow and bond markets floating.
In sum (and in theory), the market will sell off as the pool is drained of its median $100 billions in any given week.
The next visible impact would be on government spending. The federal budget is reaching its statutory debt ceiling, which must be raised before March or the Federal Gov't becomes insolvent.
How long before the impact is felt on the exchanges? One week to ten days perhaps. I really couldn't say with any authority.
I would also watch the Treasuries markets, looking for a steady uptick in yields, in what will probably be an orderly sell-off.
Best...
Hadashi
So what's about your house now?
I can't answer that question, except as a set of hypotheticals.
If you are worried about liquidity (money in circulation), money will remain in circulation and your bank will be required to accept FRN's in discharge of your debt, according to contract. What other form of payment could it demand and not violate the contractual terms? Unless there is a tiny clause which declares otherwise.
There is an ample supply of money in circulation, unless hyperinflation occurs. What does it mean to "the average everyday redneck"? Dunno. Do you care if your title is allodial (free hold and judgment proof against liens, etc.) as opposed to tenurial? Do you have insurance against risk of default? Will your bank renegotiate your mortgage if you cannot pay? Will local authorities collude with private capital to further abuse eminent domain? If defaults spread, will your local sheriff/police department refuse to comply with court orders of eviction? Will the state legislature intervene with the extension of grace periods for those threatened with eviction?
Too many variables. But in reply to your question, "Would it then mean I never really purchased it and do not own it?," no, you never "owned" it. You sold a mortgage; you didn't buy title to a house...
Not much, but perhaps it gives you additional ideas for what to do in such a case. Use your skills and creativity, seek friends who undergo similar experiences and talk to them. Form local "interest-groups". The sooner the better - best, tomorrow...
