Reply #63: Don't know why you think the working class would take a hit. [View All]

[mbperrin]

That's not who loaned all that money, but it is who's being asked to pay it back.

My grandparents never knew what the Great Depression was. They lived the same before, during, and for about 20 years after it. What happened to working people when the savings and loans went belly up big time in the 80's? Nothing.

It would be the same now. Gamblers cannot always win. Debt is a simple legal fiction that is wiped away all the time in routine court proceedings and informal walkaways.

If the net effect of a global default would be much less credit extended in the future, that's a good thing. Banks and investment houses are a net loss to the real production economy, and the sooner they are swept away, the sooner more people will have more real things.