General Discussion

KharmaTrain

(31,706 posts)

87. Many Will Panic...

Tue Oct 15, 2013, 10:42 AM

Oct 2013

...as they did in '07-'08 and liquidate as much as they can. Those are the real losers...getting pennies on the dollar. Much of the damage will be done in the early days of a default...especially as the overall recovery is still fragile. We could see a rash of foreclosures and associated defaults that could set off another wave of bankruptcies.

No doubt the price of gold and other precious metals will sore, but who do you sell to? And other countries are interdependent upon one another...as stated yesterday by the head of the IMF. A crash of the dollar would take all other currencies with it...especially countries holding US treasuries. The ripples will be widespread...I don't see how a default and subsequent drops in the markets will benefit anyone other than short sellers and hedge funds.

I've diversified over the years and play a long game. It paid off when the economy turned around in '09 and I see it happening again if we go off this cliff. In the meantime here's hoping your Plan A, B and C are sound. I'm hanging on for dear life...

Cheers...

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What will happen to you if we default? [View all] Cleita Oct 2013 OP

Disastrous, possibly a complete loss of my business. grantcart Oct 2013 #1

morph into my calling as a tribal warlord. tillikum Oct 2013 #2

I'll right beside you in the dumpster, Cleita. LuvNewcastle Oct 2013 #3

I will not get my SS check. :( Little Star Oct 2013 #4

Same here I guess DJ13 Oct 2013 #10

I think the SSA is required to purchase Super Duper Special Government Bonds. Buns_of_Fire Oct 2013 #16

It depends on how they decide to handle it el_bryanto Oct 2013 #27

Ditto. I am worried about my SS check, as it is my only source of income. n/t RebelOne Oct 2013 #23

In a budget shutdown it won't be affected because it doesn't need an appropriations bill. dkf Oct 2013 #52

There is the little problem of SSA employees being furloughed. RC Oct 2013 #80

same here. underthematrix Oct 2013 #28

My income would be cut in half Buddha_of_Wisdom Oct 2013 #5

Hang in there - there's light at the end of the tunnel! closeupready Oct 2013 #88

Nothing .... oldhippie Oct 2013 #6

Unless... KharmaTrain Oct 2013 #84

My assets are diversified ....... oldhippie Oct 2013 #86

Many Will Panic... KharmaTrain Oct 2013 #87

It sounds like you also have put more thought into this ..... oldhippie Oct 2013 #90

My net worth would crater as the market crashed Warpy Oct 2013 #7

No SS check for my husband susanr516 Oct 2013 #8

Disaster Robbins Oct 2013 #9

oh yes they do DonCoquixote Oct 2013 #14

Nothing NoOneMan Oct 2013 #11

My clients will lose their incomes or savings or both. Unemployment will go over 50%, I assume, kestrel91316 Oct 2013 #12

We watched the stockmarket dive with (mostly) equanimity because of our T-Bill retirement accounts Hekate Oct 2013 #13

Decimating Still Waters Oct 2013 #37

SS is 100% of my income. But initially, I'd be okay. Buns_of_Fire Oct 2013 #15

It would be disastrous for my mother who relies on SS. charmay Oct 2013 #17

I hope it works out, for her sake. Buns_of_Fire Oct 2013 #18

She could live with you. I'm also on SS and I'd have virgogal Oct 2013 #54

I am still working but my Mom is on SS with a very small widow's pension Ruby the Liberal Oct 2013 #19

It seems the next month SS checks will go out, but Cleita Oct 2013 #20

We're in a similar boat as you. Skidmore Oct 2013 #21

It will be very bad for seniors. Cleita Oct 2013 #26

Ugh. Reminded me. Skidmore Oct 2013 #29

I think Medicare could be suspended too, but I hope not. Cleita Oct 2013 #32

I can't think of anything. femmocrat Oct 2013 #22

Probably not much. Throd Oct 2013 #24

Your net worth will decrease. There is no way around this if republicans are stupid enough to bluestate10 Oct 2013 #35

My wife would lose her job Generic Brad Oct 2013 #25

Nothing to my knowledge. Decoy of Fenris Oct 2013 #30

What will you do, Short stocks and Debt instruments? That is the only way that I see making bluestate10 Oct 2013 #36

Mostly day trading. Decoy of Fenris Oct 2013 #62

I'll be fine. I'm not yet collecting social security and I'm still working at age 65. SheilaT Oct 2013 #31

Any consideration to what might happen to the banks when they are taken over by creditors? Skidmore Oct 2013 #34

I'm slowly moving some of my personal savings to the local Teachers' Federal Credit Union, but... Hekate Oct 2013 #39

And why exactly would the banks be taken over by creditors? SheilaT Oct 2013 #43

Not sure why I would care .... oldhippie Oct 2013 #46

I would be more concerned about what would happen to the banks in "Small Town America", when they Ghost in the Machine Oct 2013 #76

We get two SS checks for hubby and me--and hubby also gets a govt pension from the VA. mnhtnbb Oct 2013 #33

I would lose my SS I suppose. I get a pension from the PGBC, it is already underfunded so I would doc03 Oct 2013 #38

Oh. I do get a teensy pension from PBGC. SheilaT Oct 2013 #44

I put away a little money... yuiyoshida Oct 2013 #40

Taihen desu ne Art_from_Ark Oct 2013 #61

Gonna just hope for the best... yuiyoshida Oct 2013 #63

Yikes! Art_from_Ark Oct 2013 #65

I do have a girlfriend in Los Angeles who told me yuiyoshida Oct 2013 #66

I tried to find work in Los Angeles once Art_from_Ark Oct 2013 #67

My friend has a job in yuiyoshida Oct 2013 #68

So it sounds like if you HAD to move to LA, Art_from_Ark Oct 2013 #75

yup... yuiyoshida Oct 2013 #92

In my town, Plan B is always to rent out a room in your house and/or convert the garage Hekate Oct 2013 #41

This, while a pretty decent idea, is not one that can be put into play SheilaT Oct 2013 #45

Unless you live by a university or perhaps a hospital Samantha Oct 2013 #47

You charge some poor student $930 a month to live in your basement? oldhippie Oct 2013 #48

It is one hell of a nice basement - it took me 4 years to complete it Samantha Oct 2013 #50

I think some people just don't realize how much prices vary pnwmom Oct 2013 #73

That's why I didn't mention what "the going rate" is here. No one would believe it... Hekate Oct 2013 #77

I must say, that sounds pretty nice ...... oldhippie Oct 2013 #85

We live between a major university and a community college; also have a large number of ... Hekate Oct 2013 #49

That is great Samantha Oct 2013 #59

One of my friends is widowed and divided her house like that, making a very nice apartment... Hekate Oct 2013 #70

My goddaughter and her husband have shared a home with another couple pnwmom Oct 2013 #74

But you've already got the basement apartment SheilaT Oct 2013 #53

True, but others don't do all the work I did to their basements Samantha Oct 2013 #55

Not necessarily. I know two women in different states and different decades pnwmom Oct 2013 #71

I've only just recently had money to start putting into a retirement fund. eqfan592 Oct 2013 #42

For rightt now, I think I've taked the right steps to prevent disaster. napi21 Oct 2013 #51

Not sure at all treestar Oct 2013 #56

No financial aid for school if it goes a long time davidpdx Oct 2013 #57

Not a good outlook... dickensknitter Oct 2013 #58

It depends on how the Administration handles it madville Oct 2013 #60

Nothing much at first abelenkpe Oct 2013 #64

My project will probably die or be forced to 100% private funding. politicat Oct 2013 #69

My investments will decline. dkf Oct 2013 #72

Interest sky-rocketing will affect everything anyone does financially. lonestarnot Oct 2013 #78

I am advising clients to get some liquidity immediately. Laelth Oct 2013 #79

The republicans will no longer be able to claim they are fiscally responsible? nolabels Oct 2013 #81

Not really other then we lose my husbands disability/va and who knows on kydo Oct 2013 #82

Nothing, it will make me really mad but financially won't effect me. nt Raine Oct 2013 #83

I'm perpetually either preparing for a blizzard or hunkered down surviving one magical thyme Oct 2013 #89

i still have to go to work datasuspect Oct 2013 #91