by MisterB1 » Tue Feb 16, 2010 12:12 am
When there are no real solutions people sometimes come up with make believe solutions.
California (or maybe one of the other states in crisis) will be our own Greece. Do we bail out California or do we let it default? If we let it default then most of the other states will not be able to borrow and other states will default. If we bailout California then all of the other states will demand a bailout. Bailouts all around would seem to crash the dollar. On the other hand, letting California default would see a flight to the dollar away from munis.
When there are no real solutions people sometimes come up with make believe solutions.
California (or maybe one of the other states in crisis) will be our own Greece. Do we bail out California or do we let it default? If we let it default then most of the other states will not be able to borrow and other states will default. If we bailout California then all of the other states will demand a bailout. Bailouts all around would seem to crash the dollar. On the other hand, letting California default would see a flight to the dollar away from munis.