You are still mixing apples and oranges here.
A sovereign state default and a BK are quite different in how they are adjudicated.
I suppose the biggest issue with a US default is that it's the US..If we go, we take most of western Europe and Japan with us, in addition to 90% of our banks and major financial houses. They all own our debt. This will spread like a wild fire only faster.
Overnight, the dollar would become worthless internationally as well as anything based on it or related to it, like credit cards, ATM's, and letters and lines of credit.
No company could make payroll, no bank will have any cash and credit will be useless.
It's nothing like a bankruptcy where the debtor is protected so that assets can be accounted for, and sold.
At some point, when the fires go out in every city and the bodies are long gone, someone will step in and claim the territory as a matter of possession, but it won't be organized and it won't be adjudicated.
The GM BK was a prepack, In any prepack, it's all worked out in advance and there are no particular rules or pecking order except what is agreed to prior to the BK. Since it was the government who stepped in with the interim financing and cash, they got to call the shots. Not the bondholders who apparently sat on their hands and did not see what happened coming.
They could have gotten together and saved GM but they did not move quick enough or dilly dallied, giving the government time to effect what was essentially a asset seizure. (done to protect down line support businesses and competitors, and the union) very different then what is going to happen when the US meets the end of it's road to ruin.
Remember the GM “bankruptcy”, Obama rearranged the line.
You are still mixing apples and oranges here.
The point being that gm is an example where the rules were NOT followed and another line formed which should not have happened. Yet another example of no longer being a republic, a nation of laws.
Remember, bankruptcy laws are nothing more than an establishment of the order of the line for the marbles.
Again, I encourage you to research the USSR as a very recent example of what happens.
In some ways, I can only hope that our’s will happen the same as the USSR but ours will be the same and different. The “Invisible Hand” always speaks.
The first bankruptcies like USSR get away with a lot as protocol is established. The ones later get taken to the cleaners as creditors figure out what they missed. Saw that in the farm crises.
I Never said the it said it would be organized and abdicated and the debtor protected. I said the line will be formed and the marbles grabbed.
Remember we woke up in the morning, read in the newspaper that USSR was bankrupt, it happened that fast.................. (yes I know, it did but it didn’t)
You are still mixing apples and oranges here.
The point being that gm is an example where the rules were NOT followed and another line formed which should not have happened. Yet another example of no longer being a republic, a nation of laws.
Remember, bankruptcy laws are nothing more than an establishment of the order of the line for the marbles.
Again, I encourage you to research the USSR as a very recent example of what happens.
In some ways, I can only hope that our’s will happen the same as the USSR but ours will be the same and different. The “Invisible Hand” always speaks.
The first bankruptcies like USSR get away with a lot as protocol is established. The ones later get taken to the cleaners as creditors figure out what they missed. Saw that in the farm crises.
I Never said the it said it would be organized and abdicated and the debtor protected. I said the line will be formed and the marbles grabbed.
Remember we woke up in the morning, read in the newspaper that USSR was bankrupt, it happened that fast.................. (yes I know, it did but it didn’t)