The Debt Debate's Real Doomsday Scenario

Slideshow of Doom 1

Photo: Sequoia Capital

On Tuesday, in the late morning, I asked a banker to explain what will happen if the debt ceiling is not raised on August 2. He was not just any banker; he was and is the authority on the U.S. bond market at one of the biggest banks in the world. He is in touch with the Treasury Department, and the Treasury Department is in touch with him. When I asked the bank if I could speak to someone about the debt ceiling, it wouldn’t let me speak to anyone but him. He is a good source, and what he told me should have calmed me down about this whole government-created government crisis, because what he told me was that even if Congress doesn’t raise the debt ceiling, the Treasury Department will not stop paying the interest on its debts.Read More At >

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