“No one is threatening that yet, but watch as this thing disintegrates and we’ll see if something like that isn’t precisely what ends up on the table.”
—What do you think of the timing of this, bubbling up right before the election? The usual suspects (Paul Krugman, Ezra Klein, the NYT, and all the Soros-blogs) are pumping this nonstop, much like everybody was hyping the ‘Death of the Euro crisis’ and the ‘immediate global collapse because of the disintegration of the EU’ right around the time the FinReg bill was making its way through Congress. After all the doomsday reports, the Euro is at an 8-month high against the dollar, and recent stress tests of European banks showed that they were pretty strong all along, actually...
Not to say that the foreclosure situation isn’t a real problem, but IIRC a fair number of these homes are not occupied, and why *right* now (never let a good crisis...?)
I think default is on the table now.
I don’t know why anyone would seek this, because it is so dangerous and it will be so hard to capitalize on it politically. But I do think this is intentional, if that’s what you’re asking...
I just don’t see their endgame.