You Could Lose Everything Very Soon

[rhinefire]

If we default on our loans we will not be able to borrow money and you stand a chance to take a huge hit in your financial portfolio, like 50% in a week. Once the panic starts it will dwarf 1929. Keep in mind in 29 you had to go through a broker to sell, today you hit "SELL" on your laptop and the world tanks in one hour!!!!

 

[clownboy]

Absolute nonsense. The sky is falling, the sky is falling. The only effects of default, besides the political, is that our credit ratings will be downgraded and the insane credit card we're running right now as a nation will cost us more in interest in the future.

 

[davidtaylorjr]

If we default on our loans we will not be able to borrow money and you stand a chance to take a huge hit in your financial portfolio, like 50% in a week. Once the panic starts it will dwarf 1929. Keep in mind in 29 you had to go through a broker to sell, today you hit "SELL" on your laptop and the world tanks in one hour!!!!

There there Chicken Little.......

 

[soot]

The only effects of default, besides the political, is that our credit ratings will be downgraded and the insane credit card we're running right now as a nation will cost us more in interest in the future.

That's it?

What are your qualifications for making this prediction?

 

[Helix]

Absolute nonsense. The sky is falling, the sky is falling. The only effects of default, besides the political, is that our credit ratings will be downgraded and the insane credit card we're running right now as a nation will cost us more in interest in the future.

and we stand to lose our status as global reserve currency. between that and the interest, defaulting could amount to the biggest effective tax increase in modern times.

 

[specklebang]

I doubt that we will truly "default" on our loans. At worst, we'll make a late payment. Sometimes my tenants tell me they have problems and ask to pay their rent late. I allow this because I am confident I will be paid.

The USG is not permanently closed.

 

[clownboy]

That's it?

What are your qualifications for making this prediction?

What are yours for endorsing Chicken Little pronouncements of doom?

 

[Lutherf]

If we default on our loans we will not be able to borrow money and you stand a chance to take a huge hit in your financial portfolio, like 50% in a week. Once the panic starts it will dwarf 1929. Keep in mind in 29 you had to go through a broker to sell, today you hit "SELL" on your laptop and the world tanks in one hour!!!!

Well, while bond yields are up gold hasn't taken off yet so I don't see panic setting in quite yet.

 

[justabubba]

this thread should be moved to the conspiracy section

to the OP, convert yor assets to gold and go bury it
you will sleep better

for the rest of you
do what you have always done

 

[soot]

What are yours for endorsing Chicken Little pronouncements of doom?

I didn't endorse anyone or anything.

I asked you two questions about your comments without making any reference at all to what the OP said.

So I'll ask again:

We fail to raise our borrowing limit and consequently default on our debt, do you stand behind your comments that the ONLY consequences to that are a downgrade in our credit rating and a long-term increase in the interest rate on that debt?

What are your qualifications for making such a claim?

I mean, think back to July/August 2011.

Stock prices fell 11% inside of two weeks while Congress fiddled around over the debt limit culminating in a 5% plunge on Aug. 4 two days after Congress had actually approved raising the debt ceiling.

I don't think the stock market would lose a full half of it's value, as the OP claims (in what I consider to be alarmist and exaggerated fashion) but I think 25% to 35% is completely reasonable to expect if we so much as ask for a couple day grace period, never mind full-fledged default.

That might not really mean anything to you, but it's certainly not "nothing".

 

[Northern Light]

A default will come eventually if our government shutdown is any indication, but people should not be so arrogant and self-assured that they know how such a default would play out. We are already losing major face as a world peacekeeper because of our foreign policy of the past 15 years or so, but if we default and our currency becomes second rate then we will be doing ourselves a double disservice.

People don't realize just how good we've had it the past 40-50 years or so. We've been sucking the world dry to pay for our luxuries. It's about to end, along with our vibrant middle class. When it does, it's not going to matter which party you think is right, you're going to suffer.

Oh well, there's not much point in talking about it. Talk is cheap. When it happens, people will see the reality. Until then, let the partisan bitch fest continue!

 

[clownboy]

I didn't endorse anyone or anything.

I asked you two questions about your comments without making any reference at all to what the OP said.

So I'll ask again:

We fail to raise our borrowing limit and consequently default on our debt, do you stand behind your comments that the ONLY consequences to that are a downgrade in our credit rating and a long-term increase in the interest rate on that debt?

What are your qualifications for making such a claim?

I mean, think back to July/August 2011.

Stock prices fell 11% inside of two weeks while Congress fiddled around over the debt limit culminating in a 5% plunge on Aug. 4 two days after Congress had actually approved raising the debt ceiling.

I don't think the stock market would lose a full half of it's value, as the OP claims (in what I consider to be alarmist and exaggerated fashion) but I think 25% to 35% is completely reasonable to expect if we so much as ask for a couple day grace period, never mind full-fledged default.

That might not really mean anything to you, but it's certainly not "nothing".

And speculators made barrels full of cash, the FOREX folks were raining money when that happened. When a nation defaults on it's loans, quite simply the banks adjust and continue on. Now, how long did it take for the stock market to reach new heights after that plunge?

I'm sure there are other consequences, my main point was to rebut the over the top and silly doom prediction of the OP.

 

[soot]

I'm sure there are other consequences, my main point was to rebut the over the top and silly doom prediction of the OP.

That's fair enough, and I agree that it could have used more than a little rebutting.

But I hope you'll agree that a response tantamount to, "Mehhhh, NOTHING will happen", is taking it a good deal too far in the other direction.

I asked you those questions because I don't recognize you.

I didn't know whether to classify you among DP's conservative idiotsphere (and I think your initial response could lend itself to such classification) or what.

So rather than just start calling you names I figured I'd ask, "Hey, WTF are you, and did you REALLY mean that?"

For what it's worth, I don't think you're an idiot. I think your initial brevity was more a rush to get off a smartass rebuke than anything else.

 

[washunut]

and we stand to lose our status as global reserve currency. between that and the interest, defaulting could amount to the biggest effective tax increase in modern times.

What currency could realistically become the reserve currency???

 

[AlabamaPaul]

What currency could realistically become the reserve currency???

Bit coins? eace

 

[Helix]

What currency could realistically become the reserve currency???

China offers next step in removing dollar from reserve currency status - National Finance Examiner | Examiner.com

selling us the rope. it's amazing how far we've fallen since 2000.

 

[AlabamaPaul]

China offers next step in removing dollar from reserve currency status - National Finance Examiner | Examiner.com

selling us the rope. it's amazing how far we've fallen since 2000.

There is not enough gold on the planet to finance today's economy...

 

[Helix]

There is not enough gold on the planet to finance today's economy...

did you quote the wrong post or something? i'm not advocating the gold standard.

 

[AlabamaPaul]

did you quote the wrong post or something? i'm not advocating the gold standard.

Your link did...

 

[clownboy]

That's fair enough, and I agree that it could have used more than a little rebutting.

But I hope you'll agree that a response tantamount to, "Mehhhh, NOTHING will happen", is taking it a good deal too far in the other direction.

I asked you those questions because I don't recognize you.

I didn't know whether to classify you among DP's conservative idiotsphere (and I think your initial response could lend itself to such classification) or what.

So rather than just start calling you names I figured I'd ask, "Hey, WTF are you, and did you REALLY mean that?"

For what it's worth, I don't think you're an idiot. I think your initial brevity was more a rush to get off a smartass rebuke than anything else.

Well, I think your characterization of my post is off as mine was off about yours. But that can happen when you put people in categories that you've built. I am conservative in some issues, liberal in others, and still some others where my opinion doesn't neatly fit either category. I do know from 60+ years of experience that this too shall pass. I've seen enough government shutdowns to know, historically, they end up being a tempest in a teapot.

 

[Helix]

Your link did...

i'm not a gold bug. i'd fix the problem through a combo of tax increases, targeted cuts, and a complete reworking of our national priorities.

 

[clownboy]

China offers next step in removing dollar from reserve currency status - National Finance Examiner | Examiner.com

selling us the rope. it's amazing how far we've fallen since 2000.

Yeah, but important to note, IF China is doing this by plan, the plan began long, long ago.

 

[AlabamaPaul]

Yeah, but important to note, IF China is doing this by plan, the plan began long, long ago.

China's economy would collapse...

 

[clownboy]

China's economy would collapse...

They're in pretty good shape. They've managed to use the last 50 years to buy up and lock down the resources they would need going forward.

 

[AlabamaPaul]

They're in pretty good shape. They've managed to use the last 50 years to buy up and lock down the resources they would need going forward.

If they have no customers, they're toast...