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My take - be VERY afraid. This is huge and will have massive implications. I dont have a solution, bus since when is the governement with a ton of money ever a feasible solution?
Johnny - I agree in spirit with the let em fail philosphy, but what that means is that major credit markets will go belly up, which could result on runs on banks, and major paralysis. When we think "loans" we think home, car, etc, but what we are seeing in impact in is the daily flows of credit, for example, very day businesses move cash between other businesses, this his how your money market mutual funds make money. Now, those are at risk! Noone wants to move the money which paralizes the economy. This is bad $hit. I am afraid!
Nebe - I dont think the poor are gettign screwed, I think in the end they'll end up living free in houses they cant afford and we'll pay for.
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