If the government eats all of these losses generated by the housing “Ponzi Scheme” that got us to this point, the U.S. may lose its AAA sovereign debt rating and eventually wind up like an insolvent banana republic. The fools in Washington (all of them: Democrats & Republicans) seem intent on breaking the country.
I have read that quite a few pension funds held stock in these companies so you can imagine the havoc this is going to cause with people’s pensions which is going to cause more instability with the finances of a lot of people.
This is going to push the recession up the next rung in the ladder so I think it’s going to cause more sellers to panic and lower their prices quicker than they would have otherwise.
