Basically, those who do not get paid will incur a loss proportional to the risk they took. Imo, we had a manufacturing economy, now we have a market economy, in a sense it is new to us, we just buy and sell things (ie financial paper is an example). We had too much money chasing internet stocks, we recovered. I think the good that will come out of this may be a political wake up call for fiscal prudence from the top down.
This would always be a difficult situation, but we'll make it even worse with our efforts to prevent it. After all, it will be painful and there will be whining and bitching from the electorate for the Gummint to "do something". The cure will likely be worse than the disease.
When people talk like this and the media writes about how bad things are the market should start to go up. The media is always behind the eight ball . I think when oil was $140 they were on cnbc saying buy oil stocks and oil is going to $180. when i first started trading and listen to cnbc and those stock shows the stock would always tank after they recommend it .
A 600 sq ft mansion makes sense, tax deduction. Leasing a BMW on a corporate account makes sense also. However, who on earth are these people paying for $5 Starbucks piss-in-a-cup. That stuff is nasty tasting.
It's not reality, it's your personal delusion. Last time I looked shareholders in companies "most responsible for the inefficient spending orgy" got their head handed to them on a plate. They lost trillions of dollars worldwide as financial and housing related share prices crumbled, likely with many bankruptcies with shareholders getting a big fat zero to follow. What more to you want? And please, not another discussion on how Bernanke is running the money printing press 24/7 driving up commodity inflation world wide, punishing savers and retirees. By now, that theory turned out to be a complete headfake.
What about Fannie/Freddie? You cannot argue they got what was coming to them if the government bends over backward to bail them out because they cried for mommy. You are convinced that the current correction in commodities implies the bull run in them is over? We will see.
How could you have missed this point? That's EXACTLY what he's been doing... other central banks, too. http://www.nowandfutures.com/key_stats.html