Owe $$ pay $$

[radha08]

So whats going to happen this week in the US....:beats-me-man:

[radha08]

http://stocks.about.com/od/bonds/a/072011-Why-U-S-Debt-Rating-Is-So-Important-To-Stocks-Bonds-Economy.htm

interesting read...singapore also involved:eek:

[princess_morbucks]

Yes, bro radha..Singapore owns $81 B of US debt.

This is a good summary :

http://money.cnn.com/infographic/news/economy/who-we-owe/index.html

[sherlock]

And it not that they cannot pay... :p smelly leg

[thomastansb]

I am sure they are weighing their options now.

Is it worse to default or worse to keep borrowing? A default might cause lesser damage to US.

[mermaid]

So whats going to happen this week in the US....:beats-me-man:

dun care wat it will happen.
as long can crash sg ppty mkt can liao:cheers5:

[proxon]

I am sure they are weighing their options now.

Is it worse to default or worse to keep borrowing? A default might cause lesser damage to US.

Yes indeed. All they need to do is hit the 'reset' button. Or if they can, just declare chapter 11 and start all over again.

[chestnut]

Yes indeed. All they need to do is hit the 'reset' button. Or if they can, just declare chapter 11 and start all over again.

you mean Chapter 7????:D:D:D

[proxon]

you mean Chapter 7????:D:D:D

Well, I didn't know there is a chapter 7.
Anyway, after I googled

http://www.investopedia.com/ask/answers/190.asp

I think chapter 11 is more appropriate as it appears to me they are the masters of this -

"try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments".

Citibank, GM and I'm sure a lot more.

The gist is they remain intact but their debts are 'wiped' out.

In the quote above, if I use my own words, I would substitute 'attempt' to 'take it or leave it'.