the next domino to fall will be muni bonds. these cities and towns will be losing out on alot of revenue from R.E. taxes. , because of defaults. bgp
dollar devaluation is the path of least resistance. rich get richer, the destruction is difficult for ordinary people to understand, politicians don't have to make a stand, keep printing spending and promising, etc i'd expect the left/right political establishment to play that card to the point of destruction. it's just too large a problem for any mainstream politician to take a stand on. presumably it will change when the damage is literally in-our-faces-unignorable and the majority literally can't afford to continue politicians might prolong monetary dilution with synthetic war and fear. seems almost too textbook to be true, but also seems to be the path we're all on. i hate to be so simplistic, but i believe it is that simple default seems less likely than bailouts. i'd be impressed if it went the other way
Government bonds will NEVER default! The gov't owes these bondholders <b>dollars</b>, not <b>money</b>. The printing presses will still work just fine, no matter how weak the economy & dollar become. I made a post last year that many of you didn't really understand. I think it'll be far better appreciated this time around: From the thread: "What is a Dollar?" http://www.elitetrader.com/vb/showthread.php?s=&postid=1023231&highlight=dollar#post1023231
lol i know i know. not exactly world class sleuthing and yet it still feels like it needs to be said. maybe there's a more constructive place to discuss it than with professional market watchers and skilled cynics