patrick.net

Now that is an interesting take on things. Being one of the responsible folks with zero debt, cash in the bank, and a still decent 401K, I would be a little peeved. There would be no way to control the anarchy that would result and the powers that be that control the government would no longer.

chrisborden says

I too am one of the responsible ones who will lose everything I have (zero debt and lots of cash) through no fault of my own, and I will be VERY pissed. I also believe this scenario will unfold within a year. Stupid, debt-crazy, fat, dumb and lazy Americans deserve this; unfortunately, we will all pay with our freedoms and our lives (but don’t forget, you can keep all that stuff you borrowed for; that should keep you happy).

If you honestly expect this to happen in a year, why do you have "lots of cash"? Cash is a godawfully stupid way to store your assets if something like this goes down.

Anyway, something like that just won't happen in any case. Yeah, we could have something on par with the great depression (though even that is unlikely given the technological advancements since the 1930s), but we aren't going to lose everything.

I'd be more worried about a super volcano erupting than I would the complete collapse of the global economy.

Yes, a lot more people will lose their jobs. Yes, a lot more people will lose their homes. Yes, a lot more businesses will go under.

But it'll end. Life will go on.

thomhall says

Why do the under water mortgage holders get the title “owner”? The banks are the real owners. It’s all a farce!

Because that isn't legally accurate. The home is collateral for the loan -- the bank does not own it unless you default on your loan and they are then allowed to take the home as collateral for the payment.

The bank isn't the only one who can take the home if you fail to pay the right bills. Local governments can take the house if you fail to pay property taxes. HOAs can take the house if you fail to pay dues. In some states, credit card lenders can take it if you don't pay your bills.

But you do still "own" the home, in as much as you can "own" anything.

This scenario is pretty highly unlikely. The powers that be hold trillions in debt. Credit card debt, mortgage debt, student loan debt. This is used as a tool to keep us as happy "serfs" and wage slaves working for our corporate masters of the universe. They would never willingly absolve this debt.

Also, if anyone knows anything about how banks and financial institutions use their computer systems, it's pretty much impossible for a computer virus to wipe out all records, or some man made disaster (ala Fight Club) to take out their computer systems. The reasons for this are many:

1. Computer systems that house account records live on mainframes and UNIX systems not susceptible to common Windows desktop viruses.
2. Computers are backed up to tape which is then sent to a secure bunker (Iron Mountain) carved literally into the side of a mountain to prevent data loss.
3. Data is replicated between two or more geographically separate sites to protect against data loss due to hurricanes, earthquakes, floods, or other natural disasters.

Really, if you think they will just wipe out the debt, you're crazy. Now, what they will do is inflate away the debt, but this will take many years to happen and won't just happen in 1 year or less.

I think the powers that be think have one goal only: control over labor. You must work for them, doing what they say, when they say it.

A certain amount of debt is optimal for controlling the serfs and wage slaves. Zero debt is bad from their point of view, but too much is also bad, because you might just walk away from it. So they're willing to forgive just enough debt to keep you serving them.

I think the powers that be think have one goal only: control over labor. You must work for them, doing what they say, when they say it.
A certain amount of debt is optimal for controlling the serfs and wage slaves. Zero debt is bad from their point of view, but too much is also bad, because you might just walk away from it. So they’re willing to forgive just enough debt to keep you serving them.

Pretty much. For me, it comes down to oil, and when we reach "peak" oil we will lose our hold over the rest of the world and PRESTO! Suddenly we'll discover that all the good wind and solar land in this country is owned by the same sons-o-bitches we've been serving since the King outlawed cutting down his trees for firewood. Only then we'll be in a worse situation than we are now because the rest of the world won't want our useless paper anymore.

I dunno. The frosted side of me says don't worry, because this is all a game and the smarties planned it. Although with the American middle class defeated there will be no democracy.

Coming? What do you mean, coming?