Do you know how you can start a bank? Most people do not have a clue. Well, I am not about to tell you how, although I could write a lengthy article on the subject. What you should know here is that banks are required to have $7 in reserves for every $1 they have in non-performing asset. No wonder over 30 banks have been shut down thus far between 2008 and 2009.
Most of these banks had loaned out mortgages. So what happens to their assets when they go down under? Uncle Sam seizes them. That’s right. Is the government in the business of holding onto homes? No way. They’d rather get rid of them fast. What’s the quickest and smartest way to do so? Bulk Sale. That’s right.
