Krugman: To the Limit

[Derechos]

In about a month, if nothing is done, the federal government will hit its legal debt limit. There will be dire consequences if this limit isn’t raised. At best, we’ll suffer an economic slowdown; at worst we’ll plunge back into the depths of the 2008-9 financial crisis.

So is a failure to raise the debt ceiling unthinkable? Not at all.

Many commentators remain complacent about the debt ceiling; the very gravity of the consequences if the ceiling isn’t raised, they say, ensures that in the end politicians will do what must be done. But this complacency misses two important facts about the situation: the extremism of the modern G.O.P., and the urgent need for President Obama to draw a line in the sand against further extortion.

Let’s talk about how we got here.

http://www.nytimes.com/2011/07/01/opinion/01krugman.html?ref=opinion

[Skink]

1. Bring it on!!!

[AndyTiedye]

3. The Repigs are Betting that We Will Default. A Pretty Safe Bet When they can Make It Happen

They will make a lot of money on the crash. Just like last time.

They are the sort of people who would buy "put" options on the airlines when they got wind that 9/11 was gonna happen.

[patrice]

2. Isn't it true that ever since the '08 Derivative Crash there's some folks in the back rooms

behind the back rooms of America's financial institutions with their hands around each others' throats? Wouldn't a default be the decisive round in those struggles? And isn't it possible that a significant number of those decisions are going to go to predominantly foreign interests?

[patrice]

6. It stands to reason that there'd be some folks involved in this death struggle who WANT it over!!!

[patrice]

7. i.e. They HAVE to have it over. They CAN'T sustain it, because they lost so much in

'08 to begin with and the longer they hold these death grips the weaker they get. They maybe might die if they end it now with a default, but they sure as hell will die for certain sure if they don't end it soon.

[lumberjack_jeff]

4. “nobody... is willing to see the full faith and credit of the United States government collapse"

- President Obama.

Misread those tea leaves huh? How's that post-partisany thing working for ya?

In the future, any time you are tempted to say "They'd never..." think again. They will and they do because destroying democrats - by any means necessary - is important than anything else.

[riderinthestorm]

5. Some "patriotic" politicians are already buying options betting the US economy collapses. Rep Cantor

is one whose financial disclosure papers indicate he's betting the debt negotiations fail and the US treasury bonds come into play in a major way.

Despicable and perhaps even treasonous.

[Skink]

8. Goldman probably already bought CDO's.

[woo me with science]

9. K&R nt

[jimlup]

10. Thank goodness we have at least one voice of sanity. nt