I sold off all my short-duration bond funds, which are supposed to be one of the investments with the lowest risks. I can accept the low rewards that come from taking less risks, but now it seems like even this option is not available! In a financial catastrophe, cash is king. Actually, cash isn't, because what we have is fiat money based on faith. I would buy gold...except that gold had already been subject to too much speculation.
Maybe some experts would tell me I just made a wrong move. Maybe I'm being "Chicken Little". But I can't help remembering that during the Lehman Brother crisis, even boring old money market funds broke the dollar. So, imagine how much worse things could get if the mighty American government decides not to keep playing the game of musical chairs.
I must admit, I am pretty cross with Obama and the Republicans, though without knowing enough to know who is right or wrong, and who should be doing what.
Just don't default! Is all this just a game for those in power? Now, in the event of US government default, Obama is still going to be President. The congressmen are still going to be congressmen. Those who are rich and powerful are still going to be rich and powerful.
It only matters for the REST of us, yes, even if we are not Americans. I How can so few people determine the fate of so many others?