What happens if...

[Trongersoll]

What happens if a country's government defaults or goes bankrupt? Do they sell off parts of the Gov.? It's real estate? Can a Hedge Fund take over the Government? I mean really, what is the result other than making life miserable for all the other Governments out there?

[yclept]

Assets can be sold off as is happening in Greece. Other governments are not effected unless they choose to lend money to the one going bust (as is also happening in Europe). Businesses that supplied goods or services to the government are unlikely to be paid (or at least not paid in-full). All bondholders are likely to lose at least part of their equity. As a result any attempt to borrow again through new issuance of bonds will be met with buyers who demand very high interest for the increased risk that the borrowing government will default again.
The populace relearns ancient skills like grubbing in the ground for edible roots and finding bugs and such to eat. Barter becomes more common. In the case of Greece, they have to drink Ouzo (tastes like licorice), Retsina (tastes like turpentine), and Kokonelli (not sure of the spelling on that one, just tell the wine vendor you want the one that tastes like dirty dish water). Males carry swords, and females stay home where they belong! Boiled turnips become haute cuisine.

[mtntigger]

and females stay home where they belong!

Fabulous! I don't have to work anymore. ;D yclept, are you going to pay all my bills now? <<starts opening some online shoe sites.>>

'Eh, we're too big to fail. Someone/something will bail us out so they can claim to be the next superpower and call the shots.

[danshirley]

www.usdebtclock.org/

[Driftr]

Jul 11, 2011 15:11:49 GMT -5 @danshirley said:

www.usdebtclock.org/

That clock is about to get stuck I hope...