I don’t think you will see the lines drawn across income levels. I’m expecting it to come down to the productive class vs the leaching class. Much of the financial class has now joined the leaches.
I believe we are already so far gone that default is inevitable, the only question is who gets defaulted on.
It is going to come down to either the entitled (voters) or the bond holders (foreigners and bankers). By the time the 2012 elections are over, the bond holders will realize that it won’t be the entitled. Then we become Greece. Interest rates will spiral rapidly as first risk is priced in and then the budget effect of the higher rates creates positive feed back.
