By Mitch Rapp

If you combine this AP Story:

“Banks have been especially hurt by failed real estate loans, both residential and commercial. Banks that had lent to seemingly solid businesses are suffering losses as buildings sit vacant. As development projects collapse, builders are defaulting on their loans.”

“If the economic recovery falters, defaults on the high-risk loans could spike. Many regional banks hold large concentrations of these loans. Nearly $500 billion in commercial real estate loans are expected to come due annually over the next few years.”

With this Bloomberg story:

“Roubini said while the world’s largest economy won’t relapse into recession, unemployment will rise from the current 10 percent, posing social and political challenges.”

I think it’s safe to say that the American economy is going to get worse before it gets better. Since regional banks are not “too big to fail,” a wildfire of nationwide bank closures is about to sweep across the country.

Not only are businesses going to start defaulting on their loans, but increasing numbers of individuals are going to start defualting on their debt, too.

As defaults go on the rise in America, more and more governments around the world are going to default on their national debt, as well.

It won’t be long before the United States defaults on some of it’s debt, too.