A house is not an investment, it is a liability (Why? Because it doesn't accrue more value than it needs for upkeep like repairs, taxes, financing, etc).
Secondly: Money owing doesn't work like traditional credit lines. Suffice it to say, that states and nations are usually longer around than 75 years, and thus any credit works much differently. There are also different securities involved.
Besides, if a state goes bankrupt, it's the same as with a natural person declaring insolvency: Credit will not be extended anymore. A nation that cannot pay its debts is not new at all. There's a boatload of African and a couple of South American countries to which that happened. |
