Absolutely. But if retail banking were run predominantly by non-profits, we'd pay a lot less of it.
Mortgages are secured loans, so an individual default is no problem. The primary risk is of mass default (a housing crash).
If you agree with the pseudo-MMT view of the world, then the mortgage is created out of thin air in the first place, so if everybody defaults all that happens is that the money supply increases permanently instead of temporarily.
Mortgages are secured loans, so an individual default is no problem. The primary risk is of mass default (a housing crash).
If you agree with the pseudo-MMT view of the world, then the mortgage is created out of thin air in the first place, so if everybody defaults all that happens is that the money supply increases permanently instead of temporarily.