Originally Posted by
Chi
If the banks failed America would fail. Banks fund, small business, large business, government, households - everything.
Individuals/corporations would be borrowing from overseas (and even moving overseas 100x quicker than they are now - which means loss of jobs as well) which means cash-flow will be flowing out of the US constantly (good for other countries, terrible for the US). I'm not 100% how the economics works but it would significantly effect your $ and it would mean households would suffer greatly. Its not a pretty picture imo.