Wave the flag, are you kidding? All I did was point out your total inaccuracies. If you thought it was just about insolvency then write about insolvency. Yes there are potential problems there, but almost everything you wrote is completely wrong. Anyone who brings up higher interest rates and deflation in the same set of problems obviously has no clue what they are talking about. Further anyone that thinks that stock market losses equal debt defaults obviously hasn't worked in any public business to know or understand what causes debt defaults. For your scenario to play out you missed the most obvious problems that could cause a deflationary spiral, a massive reduction in value of the nation's housing stock or a heavy devaluation of the dollar. They don't work in tandem so you have to pick one. Both have very different results should they happen, but surely no one expects a clueless person like yourself to understand the economic implications of either.