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| Re: Boehner walks away, gives up on debt negotiations with Obama (814616) | |||
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Re: Boehner walks away, gives up on debt negotiations with Obama |
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Posted by SMAZ on Sat Jul 23 00:51:21 2011, in response to Re: Boehner walks away, gives up on debt negotiations with Obama, posted by SelkirkTMO on Sat Jul 23 00:12:14 2011. Sadly, so far we redid 1929. OK, that should have been enough of a warning. Now we're going to do 1931 again?This is far worse. Even during the depths of the Great Depression, the US always paid its debts. (and in gold-backed currency at that) Now we will default. BY CHOICE!! Nobody will escape. The subprime meltdown made many people rich in short-selling, etc. In this one, people who haven't already transferred their money to something else in other countries banks or treasuries will be toast. And they better hope that banks that go under in Switzerland (due to their exposure to US bonds) will have Switzerland's FDIC honor the accounts of foreigners and not "do an Iceland". yes, there is derivatives trading against US bonds, but that would be purely speculative since the Conventional Wisdom still says that a last-minute deal will be reached. I don't see any downside in moving money into euros, francs, yen, etc at this time. Their value has not appreciated much in the last couple of weeks meaning they are still a good buy should the unthinkable really happen. If a deal is reached, one can always recovert their money back into US$. Don't count on US money markets. They're going under too if we default. |
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