Quote:
Originally Posted by Bri
As Xellos said.
There are some major drawbacks at selling any of these and it is doubtfull that the treasury can raise enough liquid funds fast enough from these assests, in even in a fire-sale, to extend the deadline. Geithner has set a hard deadline at August 2nd without back-up plans. The closer we get to that date the bigger the (foreign) pressure to settle. One side will probably fold.
If they don't come to an agreement, than there is the nuclear option. Obama can order the Treasury to ignore the debt ceiling (and congress) rather than risk blowing up the international financial system. The fourteenth amendement may or may not allow this. In any case it would be a complete mess for the lawyers to sort out afterwards but certainly preferable to a default. Politicians are expendable.
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while i understand (probably under estimating) the amount of damage that cause if the US default for any reason. i really rather Obama let the republican drive the car the over the cliff. Draw that line in the sand and finally let the people decide what they want.