We agree on the enormous size of money involved. The only people not to be hurt by this fiasco will be those with their money in the bank, its FDIC insured. And if you remember the government even bailed them out in the S&L massacre.
There are mutual funds out there that are privately insured. Failure of any one of them would bring down the private insurance that backs them up.
Take your Vanguard fund, if one of the units of that fund goes bankrupt, is the rest left intact? At that point, what happens if there is a run on the fund, and everyone wants to move their money?
6 Trillion dollars worth of real estate is going to be marked to market. Thats about 12 times the size of the Savings and Loan disaster of the ’90’s.
Since we are dealing with such fantastic amounts of money, I feel, the mutual funds have to be considered a prime suspect.
On the issue of the government printing money, they have to spend it to get it into circulation. The Democrats have been doing that for years :>).
