If it were only China. Debt must either be defaulted or paid back. I think most people understand that we will eventually start defaulting on our debt. For those who prefer not to think about it, well there is always hope!
As to the matter at hand, this is a very serious problem, one for which the govt has no real solution; except to keep the drunken party going. To me this is worse than the mistakes we’ve made in Iraq by far. Fannie and Freddie are toast and we are all going to be on the hook for the bill. It just puts home ownership even more out of reach for hard working savers, by attempting to keep the mortgage market dysfunctional.
As I said over on Jim’s blog a week or two ago. This recession was baked into the cake when the fraudulent loans were inked.
