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To: loantech who wrote (136604)11/15/2008 12:24:00 PM
From: Rocket Red  Read Replies (1) | Respond to of 313295
 
Instead of defaulting the banks would be far better off too except less in payments and keep the consumer going than a foreclosure.

Same goes with buisness

The Fed fuds rate at 0 for a few years and the banks charging a small fraction of interest



To: loantech who wrote (136604)11/15/2008 12:34:07 PM
From: Claude Cormier  Read Replies (1) | Respond to of 313295
 
Tom,

Foreclosures and defaults do not cause monetary deflation as the money created by the initial loans remain in the system and us used by those who recieved it.

Monetary deflation happens only when loans are reimbursed to the lenders