Sen. Paul dismisses debt default warnings

[sailingaway]

http://www.upi.com/Top_News/US/2011/04/17/Sen-Paul-dismisses-debt-default-warnings/UPI-89791303063701/

[TheDriver]

I do think a default--not raising the debt ceiling--would rock (correct) the markets; The Paul's shouldn't gloss over that.

[eduardo89]

Not raising the debt ceiling ≠ default

[Travlyr]

Not raising the debt ceiling ≠ default

Debt default = WIN!

[low preference guy]

Not raising the debt ceiling ≠ default

that ^

[low preference guy]

I do think a default--not raising the debt ceiling--would rock (correct) the markets; The Paul's shouldn't gloss over that.

That would be great. It will mean that the U.S. won't be able to borrow money for the next 50 years. What's not to like?

[sailingaway]

Not raising the debt ceiling is an automatic balanced budget. There is plenty to pay interest, and a couple hundred billion a month more. The government would just have to live within its means for the time it took to work out a plan that was acceptable to reaching a balanced budget long term.

The market MIGHT freak, but since it knows it would be temporary, and bonds would continue to be paid, I don't know that it wouldn't be as good in some ways as bad in others. I would think it would strengthen the dollar..... and possibly lower projected gains on industries reliant on governmental largess.

[TheDriver]

Not raising the debt ceiling ≠ default

Semantics! Not raising the debt ceiling means cutting government benefits (contracts, etc.), which translates as a default to those receiving benefits. If you guys/gals don't think the markets won't retaliate for having the credit cut off, you're nuts.

My point: Rand and Ron should always mention the possible liquidation when talking about their votes on TV, and they do sometimes, however if they don't enough, they'll be the scapegoats when it goes down.

[sailingaway]

I agree they should say there could well be a jolt to the markets, but that with S&P downgrading the NATION'S outlook due to debt and no end in sight, that in the long run dealing with debt as soon as possible would be a boon to the markets.... and the markets might even take a shut down as a sign of seriousness.

[thedude]

I do think a default--not raising the debt ceiling--would rock (correct) the markets; The Paul's shouldn't gloss over that.

S&P Affirms US AAA Rating, Cuts Outlook to Negative
http://www.cnbc.com/id/42643384

Dow down 228.49 as of 11:19am EST.
http://data.cnbc.com/quotes/.DJIA/tab/2

NASDAQ down 55.10 as of 11:19am EST
http://data.cnbc.com/quotes/COMP/tab/2

S&P down 22.85 as of 11:20am EST
http://data.cnbc.com/quotes/.SPX/tab/2

All down almost 2% on just a US downgrade;
by one company;
that simply doesn't like how the government is handling debts.

I don't think an actual default will help.

The markets beg to differ.