First a default, then a depression? Some think so

Damage from a U.S. credit default would be more than bad public relations—it could affect everyone from bankers to pensioners to holders of supposedly sacrosanct money market funds.

In a research note analyzing the various consequences of a debt default, banking analyst Dick Bove pointed to a variety of areas:
Thus far, economists have been mostly sanguine about the possibility of the U.S. missing debt payments, reasoning that Congress would never let things get that far.

The focus has been primarily on the shutdown, which ultimately poses a discomfort and some modest damage to economic growth, but would have little lasting effect after government reopens.

That narrative has begun to change, however, with warnings that previous shutdowns may not serve as accurate templates for the current standoff.

Citigroup strategist Jeremy Hale outlined the dynamics in an analysis:

In 1995, House Speaker Newt Gingrich received the US public's ire while President Clinton caught a wave of popular approval that helped him to re-election later in 1996. Markets may believe that this makes a deal more likely. But market complacency may ignore the risk that U.S. politics are far more polarized now than then, and that both sides may believe that they have something to gain from holding out


Hale, too, worries that investors aren't taking into account a worst-case scenario:

With the debt ceiling there is far more danger. Government shutdowns lead to small and temporary output losses as public workers are typically paid in arrears when government re-opens. But not raising the debt ceiling means a potentially damaging fiscal drag and, eventually, default risk. We assume that even partisan politicians know this and that the ceiling is indeed raised. However, some politicians are reportedly comparing the summer 2011 US sovereign ratings downgrade to an outright default as evidence that it may not matter.


Jeelee Wheely, what a buncha poop heads

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“Hate is like an acid. It damages the vessel in which it’s stored and destroys the vessels on which it’s poured.”

There has been NO recovery we are still in a depression

don't ever say thinks can't get worse.
yeah if we dont make our payments with things already going in the terlet money wise AND people are furloughed/ripple affect for awhile...
is that the plan?
i mean i guess ur still a new-republican, do you guys want a depression/do over or what? I'm curious.

__________________
“Hate is like an acid. It damages the vessel in which it’s stored and destroys the vessels on which it’s poured.”

The way I feel tonight I'm wishing for armageddon

I noticed that , but hey, please just wish it at ur house

__________________
“Hate is like an acid. It damages the vessel in which it’s stored and destroys the vessels on which it’s poured.”

It's already ON my house!

If it takes a depression and the sale of California Canada in order to return the nation or fiscal sanity and an orientation on personal liberty, I'm all for it.

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“Quod scripsi, scripsi"

“Serpent's breath, charm of death and life, thy omen of making!”

I'm sorry.

I feel that I've let you down.

My Horse is at the farrier's today.

__________________
“Quod scripsi, scripsi"

“Serpent's breath, charm of death and life, thy omen of making!”

__________________
“Hate is like an acid. It damages the vessel in which it’s stored and destroys the vessels on which it’s poured.”

fools rush in where angels fear to tread

__________________
“Hate is like an acid. It damages the vessel in which it’s stored and destroys the vessels on which it’s poured.”