Comments by "Ray Lopez" (@raylopez99) on "Why Is Spain Heading for Economic Bankruptcy? - VisualEconomik EN" video.

  1. Default is easy and has no real consequences. Ask Argentina, which defaulted a half dozen times in the modern era and after some short term pain was back at the capital markets borrowing again. The reason this happens is that bond holders are sheep and often, due to laws, have to buy debt whether they like it or not (e.g., pension funds). I see not just Spain, Italy and Greece defaulting, but eventually the entire G7 including the USA. Probably all debt owed by foreigners would be defaulted on in the USA, and any debt held by small holders up to say $200k per entity would be honored by the USA in the form of a new dollar, call it the Amero.
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