Will the bankruptcy law bankrupt the banks?

[ayeshahaqqiqa]

If we slide into a Depression due to spiraling fuel prices, what will happen to the banks if people default on their mortgages? Houses will become worth less and less as fewer and fewer people are able to afford to get a mortgage.

Or does the new bankruptcy law take care of this-and how does it do it?

The only thing I can think of is that the banks will either rent out the houses or sell them to big conglomerates who rent them out. But if more businesses close due to high energy prices, will people even be able to afford rent?

Edited for spelling.

[bonito]

1. No

There will be plenty of people from south of the boarder, working for peanuts forever for the new american dream.

[ayeshahaqqiqa]

2. How does that save the banks?

That's the part I don't understand.

[bonito]

3. People to pay , even at lower wages

The standard of living south of the boarder is so bad that even working for less than current wages here, is better than the're situation where there is no work at all.

[cam75219]

4. three words

mortgage backed securities