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Nightmare Debt-Default Scenario Looks More Likely Every Day

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Blind Frog Belly White9/26/2013 12:38:13 pm PDT

re: #294 FemNaziBitch

Yes, money must move. Or the whole thing falls apart.

Which is what has been happening as banks have not been lending, but holding their cash reserves hostage. They will continue to do so until Congress either caves on Dodd-Frank or the banks are forced (somehow) to give-up the fight.

Well, there’s more to it than that. There aren’t borrowers, either. Most folks have little stomach for going into debt after 2008.

But the biggest problem is income and wealth inequality. It’s like Ophelia’s dress - at first it held up the economy as cheap credit made borrowing to buy easy. Now it’s become saturated, and it’s going to pull us all down and drown us.