Financial crisis: Default by the US government is no longer unthinkable | WHAT REALLY HAPPENED


Financial crisis: Default by the US government is no longer unthinkable

Paulson's latest liquidity injection has lowered over-night Libor rates for now. But, despite the torrent of cash the US has directed at the credit markets, longer-term inter-bank rates have stayed stubbornly high, and some have gone up further. In other words, even the banks themselves don't think the rescue plan will work. Expect more - and bigger - liquidity operations in weeks to come.

The trouble is, though, as the bill for these bail-outs keeps rising, so does the possibility that the political consensus will crack and there'll be an almighty, and debilitating, dust-up.

Webmaster's Commentary: 

There is no "political consensus" out here in the real world. WE THE PEOPLE think the idea sucks, and we will not and cannot pay for Wall Street's recklessness.

Let it all crash. Let the US Government with it's $14 trillion debt collapse. Then pick up the pieces and start a new nation with better fiscal sense.

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