Solvency Quotes
This quote is often misattributed to John Maynard Keynes. See linked quote.
Many companies appear to be doing much better than they really are. Often they employ PR professionals to create that impression. Some companies are not even solvent, but the only way we can all tell is to have a recession generally or in that particular sector—the equivalent of the tide going out.
This is one of the rare occasions where the person appointed to lead a major governmental program, publicy trashed the program and told citizens that they would never receive the benefits that they had already paid for. She was a partisan political appointment who had no real credentials, preparation or previous experience and her statement was so overtly political that few took the statement seriously although there were well known problems that Congress could fix as soon as they have the political will to do so. In the 15 years since this statement not a single worker has failed to obtain any benefits to which he/she was entitled. To see why such a statement can never be made with any certainty, see {619986} which explains the essence of Social Security.
The same is true of nations, cities, states and counties. As a result, we often see politicians spinning if not lying about the economic situation of a political entity. If perceived as insolvent, they can rapidly become insolvent. This is also who come counties are so sensitive to the activities of international currency traders. If a large trader or two starts to sell that nations currency, others also sell in fear that there may be a reason for the other selling and a spiral starts. The country if it does not handle this crises well will be perceived as insolvent which then makes the situation worse.
The U. S. was bankrupt, and Dallas wrote to government bondholders announcement the formal stoppage of interest payments.
