The reality that most have not grasped yet is that the consumer and citizens will "bear the brunt" of this crisis. We will absorb the debt through taxation on all fronts. It's still comical to think that Team Red didn't think that their candidate would raise taxes. Whoever is in office on all levels (federal, state, and local), will be increasing taxes for years to come.
I've made several posts regarding the "outer layers of the onion" like Iceland. Recently, a bill was proposed to have each citizen take on the debt of a failed bank. Here's what resulted:
March 7 (Bloomberg) -- "Icelanders rejected by a massive majority a bill that would saddle each citizen with $16,400 of debt in protest at U.K. and Dutch demands that they cover losses triggered by the failure of a private bank. Ninety-three percent voted against the so-called Icesave bill, according to preliminary results on national broadcaster RUV. Final results will be published today. The bill would have obliged the island to take on $5.3 billion, or 45 percent of last year’s economic output, in loans from the U.K. and the Netherlands to compensate the two countries for depositor losses stemming from the collapse of Landsbanki Islands hf more than a year ago. The island’s political leaders say they’ve already moved on to talks over a new accord…"
You have to like the name of the bill, "Icesave". At least at this point, the people still believe that they can reject the payment. It's inevitable that it will come in some shape or form under disguise.