If the US defaults....

roaminblue

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<a class="postlink" href="http://mobile.reuters.com/article/businessNews/idUSBRE99B09F20131012?irpc=932" onclick="window.open(this.href);return false;">http://mobile.reuters.com/article/busin ... 2?irpc=932</a>

WASHINGTON (Reuters) - Three of the world's most powerful bankers warned of terrible consequences if the United States defaults on its debt, with Deutsche Bank chief executive Anshu Jain claiming default would be "utterly catastrophic."

"This would be a very rapidly spreading, fatal disease," Jain said on Saturday at a conference hosted by the Institute of International Finance in Washington.

"I have no recommendations for this audience...about putting band aids on a gaping wound," he said.

Jain, JPMorgan Chase chief executive Jamie Dimon and Baudouin Prot, chairman of BNP Paribas, said a default would have dramatic consequences on the value of U.S. debt and the dollar, and likely would plunge the world into another recession.

The U.S. Treasury Department has said it expects to max out its borrowing authority next week and won't be able to prioritize payments on U.S. debt over obligations like Social Security.

Lawmakers have seemed at an impasse over raising the debt limit. Democrats want to re-open federal agencies, which have been partially closed since funding ran out on October 1, and Republicans insist any debt ceiling deal includes plans to cut government spending.

Dimon and other top executives from major U.S. financial firms met with President Barack Obama and with lawmakers last week to urge them to deal with both issues.

On Saturday, Dimon said banks are already spending "huge amounts" of money preparing for the possibility of a default, which he said would threaten the global recovery after the 2007-2009 financial crisis.

"We need global growth," he said. "We are on the verge of getting it. Please let's not shoot ourselves in the foot."

Dimon also defended JPMorgan against critics who say the bank has become too big to manage. It has come under scrutiny from numerous regulators and on Friday reported its first quarterly loss since Dimon took over, due to more than $7 billion in legal expenses.
 

plongo

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If the US defaults (deadline 17/10/13) were royally fecked

Major impact would be pressure on interest rates. Low rates are the only factor keeping the UK going, any rise would plunge us (UK) into bankruptcy, housing crash etc etc

Don't think they will let it happen though.
 

roaminblue

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plongo said:
If the US defaults (deadline 17/10/13) were royally fecked

Major impact would be pressure on interest rates. Low rates are the only factor keeping the UK going, any rise would plunge us (UK) into bankruptcy, housing crash etc etc

Don't think they will let it happen though.

Seems a bit like two kids saying: "if I don't get my way, I'm not playing"
 

plongo

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Yeah Roamin it is that childish. Scary to think the world is run by people with personal agendas
 

RandomJ

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What a world we live in that the actions of a few greedy idiots can affect the whole world.
 

mindmyp's_n_q's

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It won't. All that this is, is political point scoring.

They will eventually come to a solution one way or the other, they will not default.
 

Balti

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mindmyp's_n_q's said:
It won't. All that this is, is political point scoring.

They will eventually come to a solution one way or the other, they will not default.

they'll doubtless use the threat to manipulate and expolit the markets

the rich will just get richer
 

neel

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They will print more dollars n give a name fiscal stimulus
 

marco

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plongo said:
If the US defaults (deadline 17/10/13) were royally fecked

Major impact would be pressure on interest rates. Low rates are the only factor keeping the UK going, any rise would plunge us (UK) into bankruptcy, housing crash etc etc

Don't think they will let it happen though.

it can go well past the 17th and into november before any default this is down to the US not paying the gov workforce it buys them a 3 week extension
 

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