Massive layoffs cause civil disturbances and unrest. Leftists become media darlings. Government mortgage and loan guarantees require billions as failures and bankruptcies reach epidemic proportions. Runaway U.S. budget deficits require massive funding. Special interest rate deals appear.
Municipalities go broke.
The dollar takes a vicious drop. The Fed strives to push interest rates lower and sinks the dollar further. Foreigners, gripped by a sickening downward spiral of domestic asset values, sell whatever is liquid and U.S. bonds go out the window. U.S. interest rates see-saw as dollar dumping gains impetus. Politicians and monetary officials make frequent reassurances and daily promises that are broken on the following day.