Just for Funsies ...
July 5, 2011 3:20 PM Subscribe
Let's say the Congress and the President are unable to reach a deal on raising the debt limit by August 4th. And let's just say, among the things that happen is that buyers of U.S. Treasury notes, bonds, Tbills, etc. on the August 15th Treasury sale demand a much higher interest rate to compensate for the fact that the "full faith and credit of the U.S." has been tarnished.
posted by CollectiveMind to Law & Government (5 answers total) 1 user marked this as a favorite
If the U.S. defaults, the stock market might fall but would it be a buying opportunity when it hits bottom, meaning is it a good time to pull money out of bonds? What about lower level bonds, like U.S. Savings Bonds? Will they also lose value? Will their yield change? What about their maturity date? Might either be adjusted? Or is it feasible to say nobody knows what will happen regardless of what we would like to believe will happen?