U.S. Debt Default Would Be Worse Than Lehman

It's an engineered distraction. We (led by the media) far for it every time.<p>Just like the nonsense about the "mosque at ground zero" - remember that? Notice how all the nonsense vanished?<p>Remember the debt is stuff we've already "bought" it's not the future budget and has been raised dozens and dozens of times, under every kind of leadership or lack thereof. This is just a puppet show - one side makes the show and the other side sits memorized and doesn't look at what else is going on.<p>Just imagine if we actually had this much effort by news outlets into health care reform (not the health insurance fiasco we got instead). We might have gotten an actual progressive solution.

"It would be a totally self-inflicted cataclysm,” he said. “There’s no question the United States can meet its obligations. This idea that somehow that we cannot pay because we’re having a political fight over how to handle the spending and taxing” is “democracy functioning in the worst possible way,” he said."<p>Yup the who thing is a self inflicted cluster-f*k. From the politicians who spend to much, to voters who don't think about who they are voting for, to media who would love nothing more than armeggedon so they could get a few more rating points. One thing I know for sure, is that there will be a chapter on this period in the US and the world in economics textbooks.

I'm fairly certain there is no crisis. They'll come to some last minute deal, as always, after they've done all the theatrics for MSNBC and Fox.

My thoughts when reading these sorts of articles is that we are faced with essentially two choices:<p>* Keep building the house of cards<p>* Let it fall down<p>I don't see any points of view that advocate slow unwinding of the issues that got us here, and that's troubling.

What a rubbish article. 1000 words to sum up something that most people probably know. With absolutely no analysis or details or links into anything interesting. Press release journalism at it's most boring.<p>(Yes I know it's not technically a press release)

I don't think anyone thinks we shouldn't pay.<p>Instead, what everyone thinks is that we -have- to balance the budget, and this appears to be the only way to get politicians to do their jobs. They seem to be treating a balanced budget as if it isn't their problem. That someone else should be doing that.<p>I'm starting to wonder if that's right. Maybe there should be another body that has oversight of our ridiculous spending.

Right. Not exactly being able to pay one's debts will surely be corrected by taking more debt. And having more loaned money to spend will naturally just encourage tightening up one's expenses.<p>If this financial situation wasn't about a nation but a private person, it would be obvious to everyone that his finances are simply fucked up.

How much is owed to the Fed? If they don't raise the debt ceiling, just "default" to the Fed -- they still have the $4 trillion sitting there that hasn't been touched.

obvious headline is obvious.

Hah when I read the title of this post I was like Duh, no kidding it would be way worse.