I always enjoy reading doomsday scenarios and this is a nice one by Erskine Bowles:
Very Serious Scare Tactics by Paul Krugman:
...Here’s Erskine Bowles, on March 8, 2011, warning about an imminent debt crisis:
This problem is going to happen, like the former chairman of the Fed said or Moody’s said, this is a problem we’re going to have to face up to. It may be two years, you know, maybe a little less, maybe a little more, but if our bankers over there in Asia begin to believe that we’re not going to be solid on our debt, that we’re not going to be able to meet our obligations, just stop and think for a minute what happens if they just stop buying our debt.
What happens to interest rates and what happens to the U.S. economy? The markets will absolutely devastate us if we don’t step up to this problem. The problem is real, the solutions are painful and we have to act.
Alan Simpson then weighed in and declared that it would be less than two years — presumably based on his deep knowledge of markets and debt history, which he somehow acquired without anyone noticing...[Continue]
Comments