Just print another 3 trillion - 2 trillion for the debt and 1 trillion for future use. Problem solved
city and gov't can't default on loans. they have taxpayers and the city own land...bondholders of muni bonds have lien on city assets like corporate bonds.. what would most likely happen cities can't run deficits anymore and have to layoff etc. muni gov't would have less infrastructure spending and less jobs...in muni gov't...etc...cuts as interest rates demand by muni bond market is too high or no lenders.
A lot of the debt from incrurred during the GFC has to be rolled over in 2011 and 2012. Who the hell is going to take it on? No-one.
At best the residential real estate market is worth $23 Trillion. The stock market is valued at less than $25 Trillion. The current administration is supposedly trying to save the U. S. economy from collapsing and yet the economy is valued at only a little over $14 Trillion. http://www.goldandsilvereconomy.com/ According to the Milken Institute, U.S. residential real estate is valued at over $23 trillion, making it one of the most valued asset categories in the U.S. and surpassing the $11 trillion market value of all New York Stock Exchange (NYSE) listed stocks combined. http://knowledge.emory.edu/article.cfm?articleid=702
am thinking that since we picked up four electoriable votes at the 'spense a NY, NJ and PA that we should goraciously accept all Yankee re-fuggees. _______________________________________________________ LOL, I'm one of them. I'm a Yankee by way of Chicago to Texas. Been in Texas for about 5 years. Love most of it. Plenty of money to be made and cities like San Antonio, Houston, Dallas and ATX are still great places to make money. Even though there is unemployment, is nothing like the rest of the country. And oh yea, Guns. More Guns and Ranches and Freedom than any other state other than Montana...and not many people live in Montana..lol. We did pick up the 4 seats. However, it was due to the Mexican Population. Gota be careful with that as Mexican's can turn Democratic, Free-loading scumbags pretty fast. So far, most are hard working, tax paying in my area. We are also getting a huge influx of very wealthy Mexicans relocating their Companies and spending a lot of money on Houses. But there is the one element of Illegal...that we have to watch out for.
If I may interject... A house is never free, innit? It might cost you nothing upfront to buy, but that's an entirely different kettle of fish.
Interesting counterpoint to Whitney: http://www.bloomberg.com/news/2010-...uni-default-call-commentary-by-joe-mysak.html