Posted on 02/20/2012 8:09:06 AM PST by Kartographer
Banks were closed and reorganized, depositors protected and external creditors told to stuff it. Despite claims at the time of "dire consequences" they never materialized -- oh threats were made, but in the end nobody invaded and nobody did a damn thing about it, because they couldn't.
As for handcuffs, we might get those too....
Iceland’s special prosecutor has said it may indict as many as 90 people, while more than 200, including the former chief executives at the three biggest banks, face criminal charges.
That would be a great thing indeed.
The lesson here is that you don't have to put up with the banksters and the world will not end if you feed them to the sharks. Rather, what will happen is that your economy will recover.
We should all make them eat their own cooking, following Iceland's example.
(Excerpt) Read more at market-ticker.org ...
We need to prosecute thousands ... including many government and political crooks.
No need to excerpt:
“Market Ticker content may be reproduced or excerpted online provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media. “
Iceland’s special prosecutor has said it may indict as many as 90 people, while more than 200, including the former chief executives at the three biggest banks, face criminal charges. That would be a great thing indeed. The lesson here is that you don't have to put up with the banksters and the world will not end if you feed them to the sharks. Rather, what will happen is that your economy will recover. We should all make them eat their own cooking, following Iceland's example.It's true. Private property and earning a living are overrated. Our only hope is the government and federal judiciary.
As a country, we can’t default. It’s unconstitutional, which is too bad, because it world be the best outcome, at this point.
No one would lend us any money for a good, long time, effectively forcing government to balance its budget, indefinitely. The economy would take off.
Japanese prisons still turn out a lot of high quality manufactured goods. When I lived there, one of the things we looked forward to was the annual sale of prison made furniture at the local Dai-Ei (Japan's Wal-Mart equivalent). It was beautiful top museum quality craftsmanship, something we couldn't afford, but some people did. Some of our more wealthy Japanese friends told me it was bargain priced for the superb quality.
As you might suppose, people who put in 15 hour work days producing this quality of craftsmanship, do not have any energy left to rape, study law, study Islam or riot. But I repeat myself.
You can close the banks if, like Iceland, most of the depositors are overseas. What are they going to do, invade? Some of them considered it.
However, if the depositors are located right in your country, then things become considerably more complex. The money that disappears in uninsured accounts belongs to your citizens and companies, and the losses will be felt throughout the economy.
Please post the relevant part of our Constitution that forbids the US Government from not paying it debts.
Why are people saying its OK to default? What crime did the banks commit that would permit debtors to default? Iceland’s banking crisis resulted from people borrowing too much plus an overvalued currency plus the fact that Iceland is a small market that it vulnerable to swings in interest rates and lending standards in other countries. None of those things are crimes. The same thing happened in a lot of other countries.
The issue is people living above their means and borrowing too much. At a national level, the issue is government over-spending. None of those things are cured by default. Default is the easy way out of dealing with our private and public over-spending problem. Did some banks commit crimes? Yes. Was criminal activity the cause of the crisis? No. We need to buckle down and stop spending and live within our means. Default is a quick fix for people who don’t want to deal with the real issues. Ultimately, it destroys the credit markets which is not a good thing in the long term.
Why are people saying its OK to default? What crime did the banks commit that would permit debtors to default? Iceland’s banking crisis resulted from people borrowing too much plus an overvalued currency plus the fact that Iceland is a small market that it vulnerable to swings in interest rates and lending standards in other countries. None of those things are crimes. The same thing happened in a lot of other countries.
The issue is people living above their means and borrowing too much. At a national level, the issue is government over-spending. None of those things are cured by default. Default is the easy way out of dealing with our private and public over-spending problem. Did some banks commit crimes? Yes. Was criminal activity the cause of the crisis? No. We need to buckle down and stop spending and live within our means. Default is a quick fix for people who don’t want to deal with the real issues. Ultimately, it destroys the credit markets which is not a good thing in the long term.
Of course they didn't....and they wouldn't have materialized here neither, if they bailouts never happened....now all they've done is to make the inevitable even worse.
No one would lend us any money for a good, long time, effectively forcing government to balance its budget, indefinitely. The economy would take off.
Alexander Hamilton would disagree. And our country was much worse off financially after the Revolutionary War.
There is nothing to stop congress from dropping all of the numerous guarantees it has made. It can drop FDIC, FAN, FRED, Sallie Mae, and the like, anytime it wishes.
It can pass legislation and drop all social welfare programs including Social Security and Medicare tomorrow.
It can flood the world with US dollars and devalue the debt.
Government debt is often referred to as “Sovereign” debt. It sounds all highfalutin but it simply means the King is God and gets to do as he pleases.
“Government debt, especially that held in bonds denominated in foreign currencies. Under the doctrine of sovereign immunity, the repayment of sovereign debt cannot be forced by the creditors and it is thus subject to compulsory rescheduling, interest rate reduction, or even repudiation. The only protection available to the creditors is threat of the loss of credibility and lowering of the international standing (the sovereign debt rating) of a country, which may make it much more difficult to borrow in the future.”
http://www.businessdictionary.com/definition/sovereign-debt.html#ixzz1mwVOTta7
Pain? Sure there will be pain but it is going to happen. It is a straightforward political calculation as to how we default be we will default. There isn’t enough money to pay for all of the promises.
I had read that the 14th did, but I just read it, and it looks to me like we’re good to go. So let’s default. What are we waiting for?
How dare you ask a logical question in an emotional argument. bottom line is this, IT’S ALL PART OF THE BIG LIE, and sadly a whole lot of people now believe this falsehood, we could DEFAULT TOMORROW if we wanted. In Fact I believe that We The People could also Grant to Ourselves Complete Sovereign Immunity from All Civil Liability for All Public Debts and Contracts through the initiative process in ANY STATE that allows initiatives, especially since it can be demonstrated using simple Third Grade Math to be IMPOSSIBLE MATHEMATICALLY to Honor these Promises, which makes it FRAUD on it’s Face. Thereby leaving the mess to The People that created it to fix it on their own with their money not ours.
What are the alternatives?
I’m assuming that we’re past the point of no return, so I only see default, austerity, and hyperinflation as possible outcomes.
Austerity won’t work because the bureaucracy won’t be cut, and tax hikes will drive the economy underground, resulting in a permanent depression.
Inflation would reduce everyone’s wealth, create a barter economy, and a lengthy depression.
Austerity punishes those who trusted the govt to pay its debts. And no one would lend us money again. It seems like the best option.
“Austerity “ should be “Default” in last paragraph.
Won’t happen until the corrupt and greedy politicians and officials are finished raiding the till and stuffing their pockets.
As long as there is anything left to grab... no default. Then you’ll see.
I agree. I wish it would come sooner rather than later.
The only good part will be watching the media hand-wringing over the possibility of default.
.....and they have a work ethic and a trade skill upon their release.
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