“A default would inflict catastrophic far-reaching damage on our nation’s economy, significantly reducing growth and increasing unemployment,” said Geithner in the letter to Bennet which was dated May 13. “Even a short-term default could cause irrevocable damage to the economy.”
Read the rest here.
If you enjoy the content at iBankCoin, please follow us on Twitter
did he just do a cut and paste of paulson’s script from 2008== PANIC everyone!!! GET YOUR PINTO BEANS ON!!
Exactly. Its the same play out of the same playbook.
he’s right about a double dip coming if we don’t lift the debt ceiling. No different than simply ordering a reduction of money supply.
we can’t “default”, however
Although I don’t necessarily disagree with you, I do somewhat disagree because we, and economists, can’t know what we don’t know. And we honestly do not know what will happen to our nation’s psychology and future policies if we do not raise the ceiling. I believe it is equally possible that it has a net-positive affect in the intermediate term, while the short term yields some chaotic shit.