If the FED fails what happens to government loans?

Hello all

I was asked this question but I couldn't provide an answer could you guys help me out?

Say you have a Mortgage and a government loan. What would happen to your loans if the FED fails and the dollar goes by by?

Originally posted by freeordie
Hello all

I was asked this question but I couldn't provide an answer could you guys help me out?

Say you have a Mortgage and a government loan. What would happen to your loans if the FED fails and the dollar goes by by?

FreddieMac & FannieMae, both GSE's are taken over by the US Treasury...
and have no obligation to the 'Fed' (Federal Reserve Banks)...
so the 'Fed' has no mortgate connections or loan connections-

the 'Fed' only puts (albiet temporarily) toxic assets like some mortgages & loans on their 'balance sheets' fully expecting payment when the paper reaches Maturity...

the 'Fed' is owed $100s of Billion$ or even Trillion$ for the monies they've allowed the US Treasury to print during the last two calendar years alone...

So... the 'Fed' cannot Fail... about all they could experience is a severe
devaluation of their 'wealth' as the dollar decreases in value... but I'm certain the 'Fed' manipulators have that contingency figured out already,
and will have converted all their reserve-note holdings into 'tangible assets'
(think gold/oil/minerals/land/super-bowl stadiums, etc)
long before the crash happens

So say you have a USDA farm loan and the dollar is defunct what happens to the debt?

reply to post by freeordie


If the dollar goes defunct, the least of your worries will be the USDA farm loan

That's for sure!!
I have a friend who is considering getting a farm loan.
I told him to just pay cash and stock up on Beans and bullets

They will create a law that loans will have to be paid in the new currency.

If Ron Paul had his way, it would be a constitutional amendment.