This raises 2 questions in my mind.
Firstly how long does the default have to last to stop being "technical" and become actual, so to speak
Secondly, what happens if no one really cards? Both political sides are playing brinkmanship on the grounds that a default is so apocalyptic that it can never be allowed to happen, much like the
mutually assured destruction of the Cold War era. But with only 24 hours to go equity markets are broadly flat, bonds haven't sold off except for a few short dated bills which have eased a bit, and most of the world seems remarkably sanguine. Does this mean no one, except the Chinese government, really cares? And if so, then the supposed pressure on the politicians surely is less than expected, meaning it could drag on quite a while.
To be honest I'm not sure what this all means for markets or the US economy, though it surely can't be good news, but I'm starting to think a default, technical or otherwise, may not be anywhere near as bad as everyone fears.
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