Default…..please default!!

I’m tired of hearing that the world will come apart if Greece, Ireland, Portugal et al renege on their debts.  I say let them default and let’s see what happens.  I don’t know very much about international finance but I know that I’m sick and tired of living in a world controlled by fear mongering investment bankers. 

As far as I can see, the theory that the world economy will collapse if these countries don’t make their interest payments is an unquestioned premise.  And the only way to question it is to let them fail and watch the results.  I don’t own any Greek or Irish bonds and I really don’t care if all of the world’s major banks take a huge haircut.  Maybe they’ll fail too and become the size they ought to be.  They are too damned big now and they have far too much influence on our world.

They have been making riskier and riskier loans for a long time.  They refinance old debt with new, longer-term issues.  They know that this refinanced garbage has very little chance of being repaid but they don’t care.  They will take a huge fee for repackaging the debt and get some interest only payments for a while and then move on.  They don’t care a whit if hundreds of thousands of people are laid off and/or lose benefits in order to get interest payments on loans they never should have granted.  In terms of Ponzi schemes they’re Madoff cubed.

Posted September 29, 2011

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