The Impending Economic Disaster of a US Default.
The debt ceiling crisis is causing short-term costs for insuring U.S. bonds to skyrocket, and repeated flirtations with debt default are already having subtle negative long-term effects in global markets. The $30 trillion market for credit default swaps is indicating that the debt ceiling standoff is truly serious. The cost of insurance for U.S. bonds over the next 12 months is about 50 times the price for Germany and about three to seven times that of countries like Bulgaria, Croatia, Greece, Mexico, and the Philippines. The United States is the core of world finance, but its periodic flirtations with debt default are putting it at a long-term competitive disadvantage.
- The Debt Ceiling Dispute Raises the Risks for 'Risk-Free' U.S. Bonds The New York Times
- Here's how we know a US default would be an economic disaster CNN
- Steve Rattner: Unprecedented market fears of U.S. default MSNBC
- Opinion | How a U.S. default could affect national security The Washington Post
- Investors brace for a painful crash into America's debt-ceiling The Economist
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