That number, $24Trillion, has excited a few hearts, but really, now....
As Ritholtz points out, it's only a Doomsday scenario which makes the number real, in which case "Buy More Ammo" is an imperative, not a prudent suggestion.
It assumes that every home mortgage backed by Fannie Mae or Freddie Mac goes into default, and all the homes turn out to be worthless.
It assumes that every bank in America fails, with not a single asset worth even a penny.
And it assumes that all of the assets held by money market mutual funds, including Treasury bills, turn out to be worthless
In other words, it is possible--just like it is possible for the Brewers to run the table on the rest of the season and all the post-season games.
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People talk about it being a doomsday scenario and how it could never happen. Well, two years ago if you told people that AIG and Merril Lynch would collapse while GM and Chrysler would file for bankruptcy, they would tell you that you were crazy, posing a doomsday scenario.
The Brewers will make the playoffs.
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