Your idea is ridiculous. As you said, without debt ceiling increase, government will have to shut down, payments to various programs and vendors will not be made, government workers won't be getting their checks. In other words, there will be quite a bit of shock to already fragile economy. There will be another recession. Tax receipts will again plummet. There will again be waves of layoffs. Stock and commodity markets will collapse. Municipalities will start defaulting in droves. Loan delinquency will spike again across the board. Bank solvency will be questioned again. Then serviceability of US Treasuries will be questioned, and this will blow apart the world economy.
Yes, that is what happens during insolvency. Nothing is too big to fail. The world needs a lesson in basic economics and that lesson just may be delivered by Barrack Obama and Harry Reid, Chucky Schumer, Dicky Durbin and Nancy Pelosi. Probably not the way they would wish to be remembered but there it is. The House bill won't pass the Senate, ok fine. The Senate bill will not pass the House either. If the President attempts some dictatorial nonsense under the guise of the 14th amendment, well, things may go a bit asymptotic at that point. People should be preparing for secondary vocations, the kind that persist during a deep depression. Brokers, traders, bankers and other hucksters should be training to cook, construct, repair or maintain. A good bartender is worth his/her weight in gold during a depression. So is a good auto mechanic. Many will return to agriculture. Sounds laughable? Maybe, maybe not.
The media starting to pickup commentary that Obama and the democrats have been lying all along, that default is not coming, that the world is not ending if ceiling not raised, then they inmediately fold and essentially agree to Boehner's plan. http://www.marketwatch.com/story/the-us-treasury-will-not-default-2011-07-31?link=MW_latest_news
JULY 31, 2011 AT 1PM DEBT CEILING WILL BE RAISED BY $2+ TRILLION DONE DEAL!!!! MARKETS WILL ERASE ALL LOSSES FROM LAST WEEK IN ONE SINGLE DAY DAY! GET READY FOR A 3%+ RALLY!