Why Default May Not Be So Bad

Monday, August 01, 2011

While the country anxiously waits to see if lawmakers can raise the debt limit before the August 2 deadline, a few economists and financiers are emphasizing the importance of a long-term financial solution to the deficit, even if that results in a temporary default. They question the lasting effects of a default in terms of investor confidence, citing the reputation and dominance of U.S. currency in financial transactions.

Louise Story, Wall Street and finance reporter for our partner, The New York Times, discusses the implications of a default. The overall effect may be to calm international markets while programs and people here at home suffer. She reported this story for yesterday's paper.


Louise Story

Produced by:

Saumya Vaishampayan

Leave a Comment

Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.