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Originally Posted by Nimetic
Errr. How does large scale cancellation of debt work? Nobody would ever invest in the country again.
There is already a mechanism for cancelling debt. I think it's called bankrupcy.
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Yeah, and more specifically, it's called foreclosure.
Debt crisis tops terrorism as threat to U.S. growth
Yes, that's right. Over 30% of economists now think the subprime and debt crisis is the single greatest threat to the U.S. economy...followed by 20% who think it's terrorism.
There are many people who will lose their homes. It's just a matter of time. It's sad really, but you can't go on for very long living with a negative savings rate. It catches up to you eventually.
Americans are known for their ingenuity and fortitude, especially when it comes to economics, so I don't think this spells the end-times. But I cannot help but think this is going to be a bumpy ride....for everyone.