Some republicans feel that defaulting won't be that bad

Started Oct 8, 2013 | Discussions thread
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Re: Some republicans feel that defaulting won't be that bad
In reply to Walking Dead, Oct 8, 2013

if the US defaults future credit comes into question

in order to maintain a line of credit the US would then be required to repay an amount of debt
market analysts expect this to be around 5%, and this would punch the US into immediate recession

the basis of this argument follows the GFC fairly closely
the crisis came about b/se institutions became less certain about the capacity of other institutions to fulfil cash requirements. Historically the US has been given a free reign due to its history on the certainty to repay, if it defaults that certainty is gone, and they will have to meet obligations just like anywhere else.

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