Post #1880 by jerryab on the Macroeconomic Trends and Risks board

Personal Finance Topics / Macroeconomic Trends and Risks ❤

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They won't default on the debt and then take on trillions in new debt to honor the FDIC.

If they do not back the FDIC, they will have major losses all over Congress in the next election. People will lose money deposited in the bank--that is confiscated by the govt by failing to honor/support FDIC. The AIG bailout will be puny in comparison, as the FDIC is nationwide and will impact tens/hundreds of millions of voters "in their pocketbook NOW".

The vast majority of US debt is held in the US by people living here. Whoever chooses to default on the US debt will have a VERY hard time in any election because the VOTERS who are depending on that money for retirement and other uses will vote against them en masse.

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