Bad debt needs to be unwound but without indication that debt was chasing bad assets like real estate there's no evidence that a massive failure is likely. It's

Bad debt needs to be unwound but without indication that debt was chasing bad assets like real estate there's no evidence that a massive failure is likely. It's possible (and probable) that companies financed too much and overspent for any assets they bought because of the larger asset bubble we were in since 1998 or 2002 at the latest. Real estate is particularly troubling because over the over investment in one sector, the clustering of errors by so many people, and the pyramiding of debt that fractional reserve banking allows. I'm not sure without specifics you can say anything is coming from that sector of the economy. The specifics listed don't seem to imply any systemic concerns. I'd expect that the commercial real estate bust that we're in right now is far more dangerous than anything described in this article. I'm expecting that the government is going to have to inflate like crazy to keep that from blowing up. So far I've seen little evidence that any firms that don't have massive political connections are going to be saved so any bankruptcies that you see will be dealt with like any others that happen every day in a normal, healthy economy. Liquidation is not the end of the world after all-it's part of life.