Thursday, May 5, 2011

Why The US Won't Default If The Debt Ceiling Isn't Lifted

Binya Appelbaum is on the front page of the NYT this morning with what seems like a pretty standard examination of the effects of hitting the debt ceiling. I think the reason is its alarming headline: “Debt Ceiling Has Some Give, Until Roof Falls In.” I’m not entirely clear what exactly a caving roof comprises — but the general story is clear: there are various cash reserves and other assets that the government can tap, and then spending has to be cut.

Click here to read the full post at Reuters >

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