World Top Bankers Warn Of Dire Consequences If U.S. Defaults -- Reuters
(Reuters) - Three of the world's most powerful bankers warned of terrible consequences if the United States defaults on its debt, with Deutsche Bank chief executive Anshu Jain claiming default would be "utterly catastrophic."
"This would be a very rapidly spreading, fatal disease," Jain said on Saturday at a conference hosted by the Institute of International Finance in Washington.
"I have no recommendations for this audience...about putting band aids on a gaping wound," he said.
Jain, JPMorgan Chase chief executive Jamie Dimon and Baudouin Prot, chairman of BNP Paribas, said a default would have dramatic consequences on the value of U.S. debt and the dollar, and likely would plunge the world into another recession.
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Update: US 'risking a new global recession': Talks to end shutdown still deadlocked as American is warned it is three days from tipping point -- Daily Mail
My Comment: I was in Russia when it defaulted on it's debt in 1998 .... it was not a pretty sight. On a side note .... I talked with my brother last night (he lives in San Mateo, California). He is a progressive and big Obama supporter .... and he is angry (he is of course blaming the Republicans for the mess) on what is coming down. As to what is my take on the U.S. debt and fiscal crisis .... regular readers of his blog know that I have always been critical of governments living beyond it's means, and borrowing money for future generations to pay. And while I do not expect a default on Thursday (I expect Congress to cave in .... again) .... I do expect that day of reckoning to happen one day .... I give it 5 to 10 years from now.
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