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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (212654)	12/4/2004 3:27:50 PM
From: RetiredNow	Read Replies (1) \| Respond to of 1573207

Do you know what happens to technically insolvent companies? Eventually, banks stop lending to them and they go bankrupt. Most never emerge from bankruptcy and the shareholders lose everything. If the world loses confidence in the U.S.'s credit, they will stop investing in our markets. That will have an incredibly negative cascading effect on our economy: massive inflation as the dollar plummets, loss of liquidity resulting in atrophied investment, massive job loss, sky high rates, and ultimately a great depression. We simply can't engage in socialism. Every country that has tried socialism on a dollar to person scale as we have engaged in with social security, has been battered by the economic consequences.

To: Road Walker who wrote (212654)	12/4/2004 4:54:15 PM
From: i-node	Read Replies (1) \| Respond to of 1573207

>> The federal government is "technically insolvent" It certainly is NOT. Technical insolvency occurs when an entity's liabilities (booked, or unbooked) exceed the FMV of its assets. This is the case with SS, but not with the United States. Many, many healthy companies are "technically insolvent". I don't know about "many" but some are. However, it is important to look at the nature of the entity to determine what, exactly, this means. An entity that holds substantially appreciated assets can be technically insolvent but still wealthy. A FINANCIAL ENTITY (e.g., Social Security) that is technically insolvent has a major problem. Because if it can't grow the financial assets at a rate faster than it spends, it ultimately will be "totally insolvent" (as opposed to technical insolvency). I would encourage you to study up on this subject. It does affect your future and that of any offspring you may have.