15 Bankers just paid a visit to the White House, listened to President Obama, and explained what a total disaster it would be if the US debt-ceiling is breached and Treasuries technically default. While the politicians exclaimed how bad a government shutdown would be, the banks have turned the panic dial to 11 as Goldman’s Lloyd Blankfein noted, bankers are “in a position to really know early what the consequences are,” and it would be catastrophic. The irony that the firm which the government is trying to fine $20 billion for selling fraudulent debt and giving bad advice is now providing the same government with advice on its own bad debt, is not lost on us as Dimon was among the visitors but it is Blankfein’s warning, echoing Obama, that will get the headlines, “they shouldn’t use the threat of causing the U.S. to fail on its obligation to repay debt as a cudgel.”…..
- Bankers Warn Obama, Don’t Mess With The Debt Ceiling (Again) (brotherjohnf.com)
- Left pushing Obama to raise the debt ceiling with executive order (headlineclicker.com)
- Obama Warns Wall Street On Debt Ceiling (outsidethebeltway.com)
- Krauthammer’s Take: Real Threat to Obama Lies With Debt Ceiling (nationalreview.com)