GM bondholders got the shaft. California is issuing IOU's. And its seems just about every municipal, city and state governement entity is in some kind of debt crisis. Of course the national government is bleeding too.
Primary wave 3 is when it all breaks in a horrible mess. The collapses have already started of course in Primary 1, continued through Primary 2 but of course Primary 3 is when everyone will have that big moment of "deer-in-the-headlights" look and Uncle Sam himself will be called into question.
Trillions and trillions of paper. All based on a system of faith. Faith that the paper is actually worth something.
Isn't it ironic that government itself, who is most interested in avoiding a national calamity, is actually making it worse by a) not honoring its debts (California) b) railroading people who hold debt (US owning GM and shafting debt holders).
When faith collapses, it will be government, through the anti-social actions of its twerpy bureaucrats, who will seize even more power and force the masses into a quasi-fascism all in the name of saving themselves from themselves.
The Great Bear market destroys all. There are no winners when social mood corrects massive excesses of a couple of generations.