What happens when a country go bankrupt?

I got the answer from wikianswers.

From the link below:
http://wiki.answers.com/Q/What_happens_if_a_country_goes_bankrupt

First of all, bankrupcy is highly unlikely. If a country is heading towards bankruptcy, they will:
1) Form trade agreements to increase trade
2) Seek loans from allies
3) Seek assistance by offering military benefits

i) For USA, they have signed many Free trade agreements with South Korea, Singapore and other countries. I suspect trade agreements to increase exports can only do so much for USA and is unable to turn the trade deficit into a surplus within a year or two.

ii) USA may also seek loans from Japan, Europe and many allies. But Europe is facing a crisis of its own and may not be able to save itself. Japan may help, but they face slow growth. Other allies may want to help but their financial situation makes it impossible.

iii) Only Japan may give assistance by accepting military benefits. But as long as Asia is peaceful, this may not be significant to Japan.
If all fails…

1) The stock market will crash and credit will seize
2) All financial institutions will fail
3) All government funded programs will end (such as medicaid, defense, police, education, infrastruture support like roads, utilities etc)
4) Business will close and jobs will be lost
5) There will be mass rioting (and no police to stop the rioters or fire fighters to fight the fire)
6) Everyone will start killing each other for food
7) The rich will buy the country and turn a democracy into a dictatorship

Will this happen? I sincerely hope not.

Could the COE prices for car be an indicator of the economy and stock market?

When things are rosy like now, COE prices for car are at $80,000, a 5- year high, home prices like Bishan flats broke the million dollar mark in recent history; the economy is in a boom which is about to go into a downturn. It is as predictable as the four seasons.

Recently, the government has introduced new measures to cool the car market and this means the car COE prices will likely go down by next year. If these new measures to regulate car and house prices are coupled with a credit crunch, the prices for cars and houses will fall by at least half.

As a proof of this theory, year 2009, just after the credit crisis of 2008, we witnessed the low of COE prices at $5,000 to $10,000. When the economy is flushed with cash in year 2012, COE prices went up to $80,000.

The coming weaker COE prices may also mean a weak stock market and economy. Let us await and see.