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The value of which is based on the models of the financial institutions' that sold the investments.
That's what happens when lenders realize that the entities they loaned money to are nothing but big ponzi schemes.The "Great Recession" happened because lenders in the US made about $1-2 trillion dollars worth of housing loans that could not be paid back under the terms given the borrowers.Today, the wizards of Wall Street have about $1 trillion in junk bonds and about $6-7 trillion in bonds one step above junk.There is also about $1 trillion in private equity. The value of which is based on the models of the financial institutions' that sold the investments.That is here in the US. In Europe it is even worse.Ditto for Asia. China is even worse off.You can also add about $15 trillion in dollar denominated debt owed by foreign entities.I expect that pretty much everything will be nationalized coming up. Who gets what and Why will need to be decided somehow.
So, I'm not expecting a bailout because a lot of the Tea Party movement is still in office