All of Wall Street is eager to see the debt ceiling raised and all of this default nonsense put in the rearview mirror. Jamie Dimon has been particularly upfront about his concerns, saying “we are praying” about the issue.
Why is he so concerned? Because he’s afraid of a run on the entire financial system.
This chart from a JPMorgan analyst, discussing the chances of a technical default, reminds you what happened to Money Market funds after Lehman defaulted, and the collapse of its bonds caused the Reserve Fund to “break the buck.” There was a huge run.