Quote:
Originally Posted by raab
They don’t have our cash all the time. When I take out $100 for spending money that’s mine.
That said, if a mortgage payment automatically came out of your bank and you could no longer afford it. What would you do?
Most people would take the money out of the bank, or start a new account with a different bank. That way the original bank couldn’t access their funds and withdraw the mortgage leaving them with no cash.
So a mortgage crisis, would create a run on the banks and liquidity crisis as a result of people hoarding cash, changing banks and not paying bills.
Again I could be wrong
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RRSPs, TFSAs, FHSAs,... Banks are well funded with your money. Sure, you could run out on mortgage payments, or pay off your credit with credit, but it won’t be the bank crashing in those scenarios