I've just had a weird flash of insight... I've been worried about the 'bubble' that national and consumer debt has built up for months. How can I best defend myself against the mess that will follow when that finally bursts?
Well, I still don't have any good answers to that... but I'm suddenly feeling less worried and here's why:
Banks sell their bad debts to collection agencies. Those agencies collect what they can and then write off the rest. They pretty much treat it as "high risk investments".
I'm feeling certain that somewhere along the way, someone had the brilliant idea to dress up those bad debt "High Risk Investments" as good credit... and found a way to sell them off to foreign nations and companies.
I would not be at all surprised if our own government was complicit in this considering the influence of the money lobbyists.
Q: What kind of securities did we promise China in return for the money our government has borrowed?
A: The revenue from all these sub-prime mortgages, of course.
What a perfect Enron-esque scam!
That is... until China decides to come collect on that bad debt, of course. Hmm.
p.s.: Apparently I'm not the first to think this up 60 Minutes made mention of it too.
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