Pseudonymous 6d ago

One of the two largest #Mortgage providers in the #US just decided you can use #BitCoin when you offer collateral, effectively allowing every #TechBro in the country to cash out at the same time. The #Mortgages will be left unbacked if defaulted on, since there is no way for the bank to cash out after seizing them. 

#FinancialNews #RealEstate #Finance #2008financialcrisis

https://finance.yahoo.com/markets/crypto/articles/coinbase-fannie-mae-enable-crypto-120846995.html

Coinbase, Fannie Mae to Enable Crypto-Backed Mortgages

The government-sponsored mortgage giant will accept Bitcoin and USDC as collateral through a new program with Better Home and Coinbase.

Yahoo Finance
Show threadPatrick Beisler 🏴‍☠️6d ago
@VictimOfSimony
Most Crypto loans are over-collateralized,
a default is just a liquidation and does not not leave debt to be consolidated and sold off later (like in 2008).
Show threadPseudonymous 

@psjbeisler

Do we know what the consequences are for the bank failing to be able to make their money back? The #USD has a value said to be based on "faith and trust" but in practice has a close relationship with the mortgage system. Could that defauot, when occurring on a large scale, cause #Deflation ? 

Mar 26 at 7:58pmWeb
Show threadPatrick Beisler 🏴‍☠️6d ago
@VictimOfSimony
worth remembering that the Federal Reserve back stopped bad mortgages written by those same banks.
Only 'faith and trust' in the #USD should be that it will be printed and inflated.