Population and Housing

[ijmorlan]

Just to note that the taxpayer would take the hit, as government would be obliged to make the banks whole.

I assumed that since owners would no longer own their properties (the right to give up ownership on whatever terms, including whatever price, one can agree with a seller is an important part of ownership), that basic property rights were already out the window.

Although I suppose that CDIC would have to step in to deal with the failures. I’m a bit unclear as to whether they bail out depositors with money from a fund (which would be depleted) or if they bail them out with newly created money from the Bank of Canada (which would be inflationary, except the economy would be so messed up that who knows what the overall outcome would be).