I don't necessarily buy this but this is what one guy thinks a treasury default would look like:
- "it would only take 30 days for all [Social Security] checks to stop"
- "Medicare ... would also default. Hundreds of thousands would die"
- "the cost of everything we import would triple in a very short period of time"
- "equity markets would collapse. A loss of 50% would be a good outcome"
- unemployment would reach 25%
- "there would be no credit available"
- "every mortgage borrower would " default
- "all municipalities would default"
- "all infrastructure repairs would stop"
- "there would be no real estate market"
- other countries would also default
- "there would be no US military ... pirates would rule"
I don't want any of these things to happen, but if the system is so fragile that it would fall apart in 30 days if politicians don't vote a certain way then there is something seriously wrong with it. If the debt limit is raised to avoid the catastrophe then what about next time or the time after that?