For example, my mortgage is through JP Morgan Chase. Do credit cards and mortgages and such just get wiped out? Or do they demand people pay their balances all at once? Or does another bank buy them out and the debts are transferred? How does all of that work?
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When banks go bankrupt... Historically other Banks buy the debt. They still charge you. Mortgages are traded like stocks. It's how debt is exported. Someone is holding the paper for the debt. If you pay it off early, they lose money. This is why early loan repayments reflect negative on credit reports. Higher chance of not getting full value of investing in your debt.
I don't trust gov. and banks. Last time they bailed them out when they should have punished them. They have a habit of making up rules, claiming it's universal. Little guy gets f'd. Then when big guy gets caught, exceptions made. The shit part of this is, if the bank goes under, then the next one steps up a hires the people that ruined the first one. Once this shell game breaks the USD is gone. Hoping those mad-Lads messing with GME will cause a ripple effect. Think I see the trick they are doing, exporting the debt to the next major market.. when they shift over there, they move the debt back to the USA. I need to see punishments for what these banks do, not more regulations to hide behind.