Reply #6: That's a nice, but inaccurate, version of the Great Depression's cause

[ThomWV]

Well, maybe not so much inaccurate as it is misleading.

You see, the difference is that when your borker calls you have a very short time to come up with cash or lose everything, which is what happened in the leadup to the GD. That is a far different thing that people making regularly scheduled payments on a mortgage.

Next month millions of homeowners will be making payments on those very notes that that we are being told today are worthless. The only difference is that today's holders of those mortages will be out of business next month and someone who bought them up for peanuts is going to be receiving the payments.