Tag: insolvent

$7.3 trillion in debt downgraded in past 10 days.

I keep telling you guys, what I know about economics you could write on the back of an envelope and still have room for a tediously long and grievous lamentation for an old buddy.  Even so, as I divine the sweet breads, the numbers seem impossibly large.  The yew that nets my dreamless head is this table showing debt ratings’ downgrades in the past 10 days:


Of course, “downgraded” doesn’t mean “worthless.”  Who knows?  It could be worth 100%, 75%, 50%, 25%, or 0%.  Who really knows? But $7.3 trillion is a metric assload of debt to be downgraded in 10 days during a “recovery,” which WTF are they talking about anyway?  U6 unemployment is at 22%.  These data are from Martin Weiss, who has more to say, but the short version is “dominoes all the way down.”   Soon.

United States of Bankruptcy

Since when is the TBTF JP Morgan Chase, Bank of America, Citi, Morgan Stanley, Goldman Sachs more important to the United States of America than anyone of forty four states now facing a budget crises? The amount of bailout money that was afforded the banking cartel is more than 10 times all the US State deficits ‘combined’.