So either we're fucked no matter what we do, or less people are fucked if the banks and homeowners take the rap but then we all get fucked in the end?
As far as I know, the real issue is there is no liquidity aka cash available for lending because of this. If banks fail, there continues to be no cash to barrow. People and businesses don't buy houses, cars, start new businesses, repair/upgrade equipment. This causes service and manufacturing companies to lose money or fail. They lay people off, productivity slows, there is no new work, people are then on unemployment, not spending any money and thus not growing the economy. Tax revenue falls, payments on national debt shrink, GDP shrinks while deficits and debts go up, which increase the amount of our debt payments.
I mean, we're fucked right? We are all pretty screwed on this one, aren't we? No matter what we do... Anyone?
the testament to the failure...right here
How can I trust someone that cuts his own hair?
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