I think Hudson is right and only by writing down the value of the mortgages on which the bubble is based by an amount close to the increase caused by the bubble can the economy be saved. Badly damaged but possibly saved. The beneficiaries of the bubble would be left with about 30-40% of their vast wealth, still far more than they and their progeny can possibly consume, and the other 99.9% of the population can conceivably clean up the mess.
Else it is the abyss. What will all of their paper assets be worth when no one can afford to pay any part of the mortgages? When government can't afford to enforce the laws? They can hire private security, but how will they pay them? There is not enough gold and silver in the world to go around. Paper money will be worthless, first in the USA and UK, then elsewhere. International trade will collapse. Where is Bruce when we need him? Perhaps he can show why I am all wet and make me feel better. Hopefully after he has read the two articles to which you have provided links. As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
That's exactly what's happening, foaming b.s. by way of anesthetic on one side, the python squeeze of inflation on t'other.
will the patient wake up before his organs are harvested and his fluids run dry?
thank Guin and Guinness there are still some who dare tell the truth
(and it's our hallowed bounden duty to find and circulate their screeds...read up, lurkers, join the hunt!) ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
