{"id":3508,"date":"2012-02-15T21:32:43","date_gmt":"2012-02-16T02:32:43","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=3508"},"modified":"2012-02-15T21:32:43","modified_gmt":"2012-02-16T02:32:43","slug":"default-therapy","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/","title":{"rendered":"Default Therapy"},"content":{"rendered":"<p>Why not let an insolvent debtor default and invite capitalism to do its work?<\/p>\n<p>That\u2019s the process an Austro-Hungarian economist by the name of Joseph Schumpeter used to call \u201ccreative destruction\u201d\u2026and it has worked pretty well over the years, believe it or not&#8230;&#8230;.<\/p>\n<p>Consider the divergent fates of two countries that came face-to-face with a financial crisis in 1990. One of these countries is still merely muddling along\u202620 years later! The other country is flourishing.<\/p>\n<p>That\u2019s because one of these countries, Japan, responded to its crisis by coddling its crippled corporations and by throwing monumental sums of taxpayer dollars at failing financial institutions. The other country, Brazil, responded to its crisis with relatively savage measures. It defaulted on its debts, devalued its currency (more than once) and did not stand in the way of corporate failure. Brazil\u2019s responses were far from perfect, but they were much less imperfect than were Japan\u2019s&#8230;&#8230;<\/p>\n<p>Too bad for Japan. Its economy has muddled along for two decades, while its stock market has produced a loss of 2% per year across that entire 20-year timeframe. By contrast, the Brazilian economy and stock market have both boomed during the last two decades, despite some very serious bumps along the way.<\/p>\n<p>via <a href='http:\/\/www.businessinsider.com\/default-therapy-2012-2'>Default Therapy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why not let an insolvent debtor default and invite capitalism to do its work? That\u2019s the process an Austro-Hungarian economist by the name of Joseph Schumpeter used to call \u201ccreative destruction\u201d\u2026and it has worked pretty well over the years, believe it or not&#8230;&#8230;. Consider the divergent fates of two countries that came face-to-face with a &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Default Therapy&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[38,5,33],"tags":[486,962,983,1295,1934],"class_list":["post-3508","post","type-post","status-publish","format-standard","hentry","category-africa-south-america","category-economy","category-uk-europe-countries-regions","tag-brazil","tag-debt-crisis","tag-default","tag-euro-zone","tag-japan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Default Therapy - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Default Therapy - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Why not let an insolvent debtor default and invite capitalism to do its work? That\u2019s the process an Austro-Hungarian economist by the name of Joseph Schumpeter used to call \u201ccreative destruction\u201d\u2026and it has worked pretty well over the years, believe it or not&#8230;&#8230;. Consider the divergent fates of two countries that came face-to-face with a &hellip; Continue reading &quot;Default Therapy&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2012-02-16T02:32:43+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Default Therapy\",\"datePublished\":\"2012-02-16T02:32:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/\"},\"wordCount\":212,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"keywords\":[\"brazil\",\"debt crisis\",\"default\",\"euro-zone\",\"Japan\"],\"articleSection\":[\"Africa &amp; South America\",\"Economy\",\"UK &amp; Europe\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/\",\"name\":\"Default Therapy - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"datePublished\":\"2012-02-16T02:32:43+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Default Therapy\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. Strategic. Unfiltered. \",\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/thepatientinvestor.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\",\"name\":\"The Patient Investor Pty Ltd\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"width\":250,\"height\":250,\"caption\":\"The Patient Investor Pty Ltd\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\",\"https:\/\/www.instagram.com\/colin_thepatientinvestor\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\",\"name\":\"ColinTwiggs\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"caption\":\"ColinTwiggs\"},\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Default Therapy - the patient investor","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Default Therapy - the patient investor","og_description":"Why not let an insolvent debtor default and invite capitalism to do its work? That\u2019s the process an Austro-Hungarian economist by the name of Joseph Schumpeter used to call \u201ccreative destruction\u201d\u2026and it has worked pretty well over the years, believe it or not&#8230;&#8230;. Consider the divergent fates of two countries that came face-to-face with a &hellip; Continue reading \"Default Therapy\"","og_url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/","og_site_name":"the patient investor","article_publisher":"https:\/\/www.facebook.com\/profile.php?id=61572934660810","article_published_time":"2012-02-16T02:32:43+00:00","author":"ColinTwiggs","twitter_card":"summary_large_image","twitter_misc":{"Written by":"ColinTwiggs","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/#article","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/"},"author":{"name":"ColinTwiggs","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5"},"headline":"Default Therapy","datePublished":"2012-02-16T02:32:43+00:00","mainEntityOfPage":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/"},"wordCount":212,"commentCount":1,"publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"keywords":["brazil","debt crisis","default","euro-zone","Japan"],"articleSection":["Africa &amp; South America","Economy","UK &amp; Europe"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/","url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/","name":"Default Therapy - the patient investor","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/#website"},"datePublished":"2012-02-16T02:32:43+00:00","breadcrumb":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/15\/default-therapy\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/thepatientinvestor.com\/"},{"@type":"ListItem","position":2,"name":"Default Therapy"}]},{"@type":"WebSite","@id":"https:\/\/thepatientinvestor.com\/#website","url":"https:\/\/thepatientinvestor.com\/","name":"The Patient Investor","description":"Smart. Strategic. Unfiltered. ","publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/thepatientinvestor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/thepatientinvestor.com\/#organization","name":"The Patient Investor Pty Ltd","url":"https:\/\/thepatientinvestor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/","url":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","contentUrl":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","width":250,"height":250,"caption":"The Patient Investor Pty Ltd"},"image":{"@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/profile.php?id=61572934660810","https:\/\/www.instagram.com\/colin_thepatientinvestor"]},{"@type":"Person","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5","name":"ColinTwiggs","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","caption":"ColinTwiggs"},"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-UA","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":1786,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/04\/imf-survey-icelands-unorthodox-policies-suggest-alternative-way-out-of-crisis\/","url_meta":{"origin":3508,"position":0},"title":"IMF Survey: Iceland&#8217;s Unorthodox Policies Suggest Alternative Way Out of Crisis","author":"ColinTwiggs","date":"November 4, 2011","format":false,"excerpt":"As policymakers continue to grapple with the problems facing the crisis-hit countries in the euro area and the clouded outlook for the global economy, attention has turned to Iceland, which three years ago saw its entire banking system crumble in just a few days. Private creditors ended up shouldering most\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1124,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/04\/follow-the-money-behind-europes-debt-crisis-lurks-another-giant-bailout-of-wall-street\/","url_meta":{"origin":3508,"position":1},"title":"Follow the Money: Behind Europe&#8217;s Debt Crisis Lurks Another Giant Bailout of Wall Street","author":"ColinTwiggs","date":"October 4, 2011","format":false,"excerpt":"A Greek (or Irish or Spanish or Italian or Portuguese) default would have roughly the same effect on our financial system as the implosion of Lehman Brothers in 2008. Financial chaos. ....The Street has lent only about $7 billion to Greece, as of the end of last year, according to\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3576,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/23\/new-push-for-reform-in-china-wsj-com\/","url_meta":{"origin":3508,"position":2},"title":"New Push for Reform in China &#8211; WSJ.com","author":"ColinTwiggs","date":"February 23, 2012","format":false,"excerpt":"An exclusive preview of an economic report on China, prepared by the World Bank and government insiders considered to have the ear of the nation's leaders, offers a surprising prescription: China could face an economic crisis unless it implements deep reforms, including scaling back its vast state-owned enterprises and making\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1611,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/27\/the-creeping-eurozone-credit-crunch-credit-writedowns\/","url_meta":{"origin":3508,"position":3},"title":"The Creeping Eurozone Credit Crunch | Credit Writedowns","author":"ColinTwiggs","date":"October 27, 2011","format":false,"excerpt":"During the 1997 Asian financial crisis, Japanese banks, getting killed with a falling Nikkei and their credit extended to Thailand and Indonesia, found that rolling off interbank lines to Korea the easiest way to shrink their balance sheets. American and European banks, not wanting to be the last out of\u2026","rel":"","context":"In &quot;Japan &amp; Korea&quot;","block_context":{"text":"Japan &amp; Korea","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/japan-korea\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2443,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/29\/ecb-expected-to-unleash-qe-money-printing-after-launching-of-euro-bonds-the-market-oracle-financial-markets-analysis-forecasting-free-website\/","url_meta":{"origin":3508,"position":4},"title":"ECB Expected to Unleash QE Money Printing after Launching of Euro-Bonds :: The Market Oracle","author":"ColinTwiggs","date":"November 29, 2011","format":false,"excerpt":"In return for surrendering fiscal policy to Brussels, - Berlin and Paris, the key paymasters of the Euro-zone, would agree to the creation of a common Eurobond that would pool the credit ratings and collateral of all participating Euro-zone countries into a single fixed income instrument. Chancellor Merkel says that\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14201,"url":"https:\/\/thepatientinvestor.com\/index.php\/2016\/09\/19\/warning-sign-of-china-bank-crisis-business-insider\/","url_meta":{"origin":3508,"position":5},"title":"Warning sign of China bank crisis | Business Insider","author":"ColinTwiggs","date":"September 19, 2016","format":false,"excerpt":"From Engen Tham, Reuters: Excessive credit growth in China is signaling an increasing risk of a banking crisis in the next three years, a report from the Bank for International Settlements says. The credit-to-gross-domestic-product gap, an early warning of financial overheating, hit 30.1 in China in the first quarter of\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/3508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=3508"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/3508\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=3508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=3508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=3508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}