[Pops]

So any doom preparation necessary in case the debt deal doesn't materialize?

Obviously people who get gov checks might put a little something by...

But what are the odds of that favorite of doomer scenarios, the collapse of the system? The full faith and credit hooie all goes out the window - they have a bond auction and nobody shows?

I mean the gov is in effect buying groceries on the credit card (like a lot of regular folks) so what happens if the card is declined?

[ritter]

Having a bit of cash on hand and a freshly stocked pantry is always a good idea, default or no. Especially for those of us in earthquake country!

[Livewire713]

$this->bbcode_second_pass_quote('Pops', 'S')o any doom preparation necessary in case the debt deal doesn't materialize?

Obviously people who get gov checks might put a little something by...

But what are the odds of that favorite of doomer scenarios, the collapse of the system? The full faith and credit hooie all goes out the window - they have a bond auction and nobody shows?

I mean the gov is in effect buying groceries on the credit card (like a lot of regular folks) so what happens if the card is declined?

[AdTheNad]

$this->bbcode_second_pass_quote('Pops', 'B')ut what are the odds of that favorite of doomer scenarios, the collapse of the system? The full faith and credit hooie all goes out the window - they have a bond auction and nobody shows?

[Lore]

The Fed is buying bonds to add further liquidity to the system. The auctions have actually still been going well.

[Sixstrings]

$this->bbcode_second_pass_quote('AdTheNad', '')$this->bbcode_second_pass_quote('Pops', 'B')ut what are the odds of that favorite of doomer scenarios, the collapse of the system? The full faith and credit hooie all goes out the window - they have a bond auction and nobody shows?

[Lore]

$this->bbcode_second_pass_quote('Sixstrings', '')$this->bbcode_second_pass_quote('AdTheNad', '')$this->bbcode_second_pass_quote('Pops', 'B')ut what are the odds of that favorite of doomer scenarios, the collapse of the system? The full faith and credit hooie all goes out the window - they have a bond auction and nobody shows?

[Plantagenet]

$this->bbcode_second_pass_quote('Lore', 'T')he Fed is buying bonds to add further liquidity to the system. The auctions have actually still been going well.

[Sixstrings]

Well if SS checks don't go out, I'll have some elderly relatives to check on. Make sure they have enough food to eat, and money for meds. If anyone has an elderly relative in a nursing home, after a week or so you'd need to check to see how long they can stay before they get tossed out.

All that's unthinkable of course.. SS checks *must* go out, doctors and healthcare providers have to get paid, and the troops and all the millions of gov workers *must* get their paychecks. That's like half of the economy, between gov checks and healthcare. And then all the small businesses that depend on nurses, retirees, and gov workers for customers, it all cascades. Screw around with that and we'll be in the Mother of All Deflationary Depressions.

Not to mention little things like the FAA.. without air traffic controllers commercial traffic has to be grounded. I saw on the news there's already a partial FAA shutdown because of some other bill Republicans have been holding up.

The consequences are so serious that I think Obama will have to invoke the 14th Amendment. Either that or martial law.. but government won't just watch the country fall apart, that's a national emergency.

[Novus]

It is not unthinkable that SS checks won't go out. On August 5th $23billion in SS checks will have to go out. The Government will only have $20billion on hand. Someone is not getting their check.

[truecougarblue]

I will feel less wealthy when on paper I lose 1/2 of the value of the retirement accounts that I don't control.

I will feel more wealthy when my PM allocations that i do control double in value.

If the stores run out of food, etc. I'll use my food storage. If I'm lucky my company will go on hiatus and I'll get a nice break from my new veep who is a major A-hole.

[Pops]

I was thinking about a repeat of '08 where you pull a string and the whole thing unravels. Basically what six talked about somewhere, that a default causing those paragons of insight and virtue - the ratings agencies, to drop the USs rating and force lots of institutional bondholders to dump their holdings.

I think the only difference between today and '08 is the average guy has lost about a quarter of his net worth - certainly there hasn't been any change in the pinstripe casino has there? Another bank and credit lockup would be a very bad thing.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('Sixstrings', '
')The consequences are so serious that I think Obama will have to invoke the 14th Amendment. Either that or martial law.. but government won't just watch the country fall apart, that's a national emergency.

[Pops]

$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('Sixstrings', '
')The consequences are so serious that I think Obama will have to invoke the 14th Amendment. Either that or martial law.. but government won't just watch the country fall apart, that's a national emergency.

[Cog]

$this->bbcode_second_pass_quote('Sixstrings', 'W')ell if SS checks don't go out, I'll have some elderly relatives to check on. Make sure they have enough food to eat, and money for meds. If anyone has an elderly relative in a nursing home, after a week or so you'd need to check to see how long they can stay before they get tossed out.

[AgentR11]

$this->bbcode_second_pass_quote('EnergyUnlimited', 'A')nd what if some prominent members of military brass challenged that and call for Obama's removal, unilateral default, general asset confiscation of anything what matters etc?

[basil_hayden]

Congress is pissing over what amounts to 1% of the budget.

Failure to act will do nothing except screw groups that borrow such as business and young people.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('basil_hayden', 'C')ongress is pissing over what amounts to 1% of the budget.

Failure to act will do nothing except screw groups that borrow such as business and young people.

[AgentR11]

I gotta agree, they are pissing over real sh** this time. I suppose its an improvement. I think its gonna kinda hurt, like having work done on your teeth, without the anesthetic.

[basil_hayden]

$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('basil_hayden', 'C')ongress is pissing over what amounts to 1% of the budget.

Failure to act will do nothing except screw groups that borrow such as business and young people.