Will the bankruptcies of State pension plans crash America? History gives an answer.
The ever-evolving rescue plans are -- so far -- just Kabuki. It's obvious, but seldom acknowledged -- as explained in this excerpt from "Europe’s bazooka is not enough", Models and Agents, 8 April 2010: Back in August 2008, Hank Paulson, then US Treasury Secretary, went to Congress to request the mandate for a potential financial backstop … Continue reading The EU does Kabuki for Greece. Is it the next domino to fall?
It's become trendy to forecast bankruptcy of governments. While the problem is real, talking about bankruptcy is nonsensical -- misunderstanding the nature of the problem. From Wikipedia: Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") … Continue reading Governments cannot go bankrupt
Summary: Hard times might lie ahead, forcing difficult choices. We must clearly understand our alternatives, and their history. IMO only clarity of thought and resolute wills will see us through the next decade. How to manage public finances might be our greatest challenge. Why do we continue down a path which almost certainly ends badly? … Continue reading We might default on our governments’ debt in the future. Do you know how often we’ve done so in the past?
Question for the Day "Would a default on Treasuries accomplish what the Balanced Budget Amendment was supposed to achieve, by forcing the government to spend no more than it takes in? With more collateral damage, of course. . . ." --- Glenn Reynolds (The Instapundit, Law Professor at U of Tennessee), source. Contents The short answer Default … Continue reading Would a default by the US government help America?