… was once again prevented. Apparently, it was a last-minute rescue. And, basically, nobody was impressed by the threat. Neither the stock market, nor the citizens. Let alone the economy. Everybody continued doing “business as usual”. Regardless of the fact that we should have put a stop to all of this a long time ago.
And everybody is happy, because it certainly would have been worse than the crisis of 2008. Now I can still remember 2008. Yet I felt nothing of the crisis at the time. The InterFace numbers were just as good (or as bad – after all, everything is relative) as in the years before and after. I was doing fine and so were most of my German fellow humans. If this is what you call crisis, then I would wish for a permanent crisis.
However, the “maximum credible accident” has only been postponed. Perhaps until February 2014. The red ink will continue to grow and reach a new border. And since I am a cynic leaning towards the morbid, I already look forward to that day. After all, how should anything change until then? How are the US of A supposed to manage the necessary “turnaround” in four months?
But then, perhaps everything is nowhere near as bad as we think? Perhaps because we are talking a very virtual reality. For instance, if the USA had intervened in Syria, it would have become very expensive. Regardless of the fact that the entire military outfit is partly something you “have to pay, anyway”. However, it would not have made a difference for today’s (almost) bankruptcy.
And also because the one reason for the MCA that sounds still most plausible to me still seems rather clinical in my view. I read the following: All kinds of funds for all kinds of purposes were spent by investing a lot of money into receivables against the US. A US bankruptcy would have the effect of a downgrading of the credit rating by all rating agencies from AAA. But then, the diverse funds are not permitted to have non-AAA shares in their portfolio – which means they would have to sell them.
Is this really true? Why can’t the funds simply change their rules and keep the shares? After all, the “scientific field” of economic studies assumes that a country cannot be bankrupt.
In any case, I already look forward to next February. And I intend to go skiing when the next day of bankruptcy arrives. I hope to have sunny weather and then I will lie in my deck chair and look upon the financial MCA or the prevention of such while enjoying the glass of beer sitting on the table next to me.
RMD
(Translated by EG)
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