Heard from reader BL this morning about the Casey Serin update I posted last night.

She asked some good questions for which I haven’t much insight. Can anyone help us figure this out? Here are her questions:

In trying to follow the imagined money trail, I hit a brick wall.

There’s got to be givers (banks) and takers (Caseys) in such transactions, but who ultimately loses all the money Casey squandered via spending and foreclosure? It seems unlikely Casey will ever be able to pay it back, and unlikelier still that the banks will eat it.

So what happens here? Do the banks pass on the loss to the rest of us with fees and higher interest rates, or do they just manufacture more electronic money?

Shoot me an e-mail with your thoughts.


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