Analysis: Preparing for the unthinkable: Could markets handle a U.S. default?

Comments (4)
Tarakohe wrote:

It seems that the real gist of this article is based in the same EXACT fear mongering that was issued by the main stream media during the run-up to the so-called ‘fiscal cliff,’ (which was always a myth)in order to cower the public into accepting austerity-based budget cutting that provides more corporate handouts at the expense of government support of the middle class, the elderly and the poor. So with this article Reuters has chosen to begin the weeks/months-long drum beat of ‘the sky is falling’ paranoia drum beat in order ti support the imposition of a corporate-based rip-off (read:’austerity’) of the middle class and poor?

Jan 17, 2013 3:41pm EST  --  Report as abuse
garilou wrote:

Why do you want to scare everyone again.
The US simply won’t default.
Some states on the hand might.
The Congress will do the same as with the taxes, hold us almost till the last moment, let the markets drop, then buy the markets and pass a (probably short term) law to move the debt seiling up.
I just wish that the markets would learn and not drop on fear.
The US can afford a higher debt, look at Spain that manages to borrow at lower rates then a few months ago with no problem.

Jan 17, 2013 4:30pm EST  --  Report as abuse
joe10082 wrote:

Absolutely not. The implications for the impact on world economy would be devastating to say the least!

Jan 18, 2013 3:07am EST  --  Report as abuse
samBerry wrote:

Yes, a default on U.S. obligations would be an unprecedented shock to the markets, but only a negligent Treasury would allow this to happen. Surely current revenues are still sufficient to cover debt service! It is the other governmental expenses that would take a hit, maybe starting with Medicare’s prescription drug benefit.

Jan 18, 2013 3:25am EST  --  Report as abuse
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