What happens if the US does default?

Author: Eamonn Sheridan | Category: News

Here is a speculative, hypothetical scenario from Marginal Revolution. Speculative and hypothetical, yes, but not at all outlandish.

A full sorting out of the payments mess takes months.  In the meantime GDP has shed five or ten percent and borrowing costs are permanently higher.  Credit stays slow and the United States enters another major recession.

Tick-tock …