No, not that defaulting on US Treasuries wouldn't be financial armegeddon... it could. But there isn't a snowball's chance in Hell of default even if the debt ceiling isn't raised! They're using deception to spook the people and legislature into going along with a CATASTROPHICALLY BAD wasting of assets... all to buy votes.
========= Mr Larry Summers has said & done some wise things; 1] lobbied nnder Pres Reagan & Clinton cut capital gains tax, 2]called for cut in unemployment comp, to HELP unemployment, 3]against the Kyota Protocol 4}lectured CA gov Grey Davis, CA crises due to ''excess gov regulation................. No wonder he finally misstepped/lied; law of averages got him. Moodys downgrade may mean much more troubel, long term
Default is pure lies. ~200 Billion in monthly revenues and ~20 billion in monthly debt service... Thing is, it will precipitate a crash multiples worse than '08. That's guaranteed.
Can you tell me how you know that? As I understand it, the idea that the Treasury can actually prioritize interest payments over the other stuff is by no means a certainty. My understanding is that it's based on a one-page GAO legal opinion issued a long while ago. It may or may not be valid, so I, for one, wouldn't bet the farm on no default.
I doubt Obama and Geithner are suicidal. They won't reneg and turn a market crash into helter skelter pandemonium. Seriously, we're talking a paltry 30 billion to charity cases and grandmas in exchange for detonating a 50 megaton nuke on the economy. Makes no sense.
Sure, I would definitely agree with that... However, if it's technically illegal and causes some ginormous lawsuits, is it still that obvious? Anyways, hope you're right and, for the record, I think Summers is a tool.
They broke contracts for GM and Chrysler bond holders to "save" the automakers, which was pretty much an after-thought subsequent to Maiden Lane. Seems to me that was a lot more clear cut than triage-ing payouts?