Bad stockbroker can make the capital market unstable. They sell out stock too fast, make their value dropped. It can make bankruptcy the company who issued the stock. It caused hundreds or may be thousands workers lost their job.
It mean, no more money for them. Many of them who had loan on the bank, failed to comply their credit. It make their mortgage taken by bank or secured creditor. The mortgage usually their house. It constrain them to find apartments for rent if they won’t to be vagrant on the street.
When this situation happen on most people who had loan, the bank can be out of money. It constrain them to held bank foreclosures to get money again. If they can’t cope with this situation, they can bankruptcy. Government interference are needed in this situation. They can give mortgage refinancing to bad credit peoples. But its not long term solution. Just to save national economy for the short term only. The exact solution for this problem is blow own “pay now buy later” from every citizen’s mind. So they not necessary to meet Seattle dentist to fix their teeth because of debt collector punch.
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