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<p>[QUOTE=&quot;medoraman, post: 1208350, member: 26302&quot;]But did Iceland default on their debt? No. Iceland keeps getting brought up, and that is not the discussion to me. I disagreed with most of our bailouts, and I agree with Iceland in them not bailing out their banks, and I believe Ireland made a mistake bailing theirs out. Given a certain backdrop, bank failures can be healthy as it will instill market discipline in the survivors.</p><p><br /></p><p>What we are talking about is countries defaulting on their own debts. That is different than not rescuing a failing bank or two. Banks get brought into the discussion by Cloud since he says they are the cause of the debt. I am simply saying sovereign default is irresponsible of the nation since they borrowed the money and spent it predominantly on social welfare. A US default would basically destroy all US banks, and many foreign ones, since US debt is so pervasive that most banks hold it as &quot;safe&quot; investments. Destroying this capital will lead to widespread bank failures do to their capital ration being destroyed, which due to loaning of working capital, widespread failures of hundreds of thousands of businesses and millions of jobs.</p><p><br /></p><p>I hope that reset the discussion. If not, no real point in &quot;internet screaming&quot;.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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