Some republicans feel that defaulting won't be that bad

Started 9 months ago | Discussions thread
Rriley
Forum ProPosts: 21,845Gear list
Like?
Re: Some republicans feel that defaulting won't be that bad
In reply to Walking Dead, 9 months ago

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.

 Rriley's gear list:Rriley's gear list
Canon EOS 5D Olympus E-3 Olympus E-5 Panasonic Lumix DMC-GH2 Olympus E-M1
Reply   Reply with quote   Complain
Post (hide subjects)Posted by
Keyboard shortcuts:
FForum PPrevious NNext WNext unread UUpvote SSubscribe RReply QQuote BBookmark post MMy threads
Color scheme? Blue / Yellow