As we approach August 2, potential crisis looms ever nearer.
Larry McDonald, president and founder of the McDonald Advisory Group and author of the New York Times bestseller A Colossal Failure of Common Sense – the Inside Story of the Collapse of Lehman Brothers, explains why if the U.S hits the debt ceiling without making a deal to raise it, it may be our next “Lehman moment.”
Here’s what he says has to happen to avert disaster:
1. Republicans and Democrats have to pretend they like each other for two seconds.
2. The US can’t default on its debt because no one’s going to understand what a “technical default” is.
3. Someone needs to do something about the Tea Party so that they stop threatening the Republican party.
Thankfully, he doesn’t think that will happen. Watch below to hear his predictions for the next few months.
Produced By: Kamelia Angelova and Simone Foxman