Even if the US somehow avoids default, the damage is being done.
First, there’s the reputational damage, the embarrassment abroad, and the de-facto loss of America’s AAA rating.
But for everyone worried about “uncertainty” this is your prime example.
Calculated Risk rounds up several stories about how the situation is hurting short-term credit markets, and contributing to a dry-up in business.
Yesterday, CNBC’s Diana Olick reported on a high number of housing deals falling through in recent days.
And earlier this week, surveys showed a real impact on business investment from this.