We experienced a real default first hand - Russia’s. Relationships, relative pricing, everything changed. That was a default folks. But is a temporary delay - technical default - in US interest payments, the equivalent of the end of civilization? Of course not.
Tax cheat Geithner claims it would be doom. So does every book on Wall St that is long US debt. But of course.
In fact, it beats becoming Greece, Portugal or Italy. And the world markets know just that, which is why all is calm.
Much worse is the risk that we go on borrowing with no conditions of control. Now that is bad news, eclipsing a technical default.
Robert Craven
Thursday, July 14, 2011
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment