Reply #28: First, the banks are not currently solvent.

[girl gone mad]

Second, it's the height of hypocrisy to claim we need to be funneling trillions to the banks, money which has largely ended up being spent on bonuses and speculative activity, as a matter of faith in our supposed "IOUs" at the same time you are arguing for defaulting on the actual obligations our government made to the American people.

Sorry, but the government never promised to backstop toxic derivatives. They did promise to pay Social Security bondholders. Defaulting on our obligation to SS will cause actual systemic risk. Forcing private debt holders to accept losses for their irresponsible risk taking is not an act which would threaten our financial sovereignty in the least.