What banks have the most bulletproof balance sheets or reserve ratios (out of my area of competence here)?
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Banks don't have bulletproof balance sheets. They own a bunch of loans with leverage. If loan values drop significantly, banks can pretty easily go to zero. Most banks have residential real estate loans, so it's really a bet that homes don't drop in price 20%+ suddenly.
That wouldn't be a problem though if people kept paying their mortgages right?
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For home values to drop 30%, I think many people wouldn't have the means to. A good question is if the government will let that happen. I think not.
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