AP-GfK Poll: People divided on looming debt crisis

[xchrom]

http://hosted.ap.org/dynamic/stories/U/US_AP_POLL_DEBT_DOOMSDAY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-06-25-14-09-28

WASHINGTON (AP) -- It might be time for another midnight ride by Paul Revere, this time warning "the creditors are coming."

Americans seem not to have awakened to the fast-looming debt crisis that could summon a new recession, imperil their stock market investments and shatter faith in the world's most powerful economy. Those are among the implications, both sudden and long-lasting, expected to unfold if the U.S. defaults on debt payments for the first time in history.

Facing an August deadline for raising the country's borrowing limit or setting loose the consequences, politicians and economists are plenty alarmed. The people? Apparently not so much.

They're divided on whether to raise the limit, according to an Associated Press-GfK poll that found 41 percent opposed to the idea and 38 percent in favor.

[Drale]

1. There is no debt crisis

there are only terrorists holding the country hostage.

[Gman]

2. The 41% opposed are buying the distortion and lies

One of the first things I was told in my first finance class was that the entire financial structure of the country is based on "the good faith and credit of the United States of America". That is not rhetoric. If they don't raise the debt ceiling, the US is a deadbeat and interest rates could go through the roof (due to the increased increase rate on Treasury Bills). In the short term interest rates will go up some. The longer it lasts, the higher rates will go. In any event of default, the risk will remain and interest rates will be permanently higher as a result.

[DJ13]

3. If the public is not aware, the MSM is to blame

The MSM has been down playing the severe impact a federal debt default would have on the overall economy.

They are probably doing that because if the public knew how serious it would be they would likely not support the GOP in using it in a blackmail attempt to destroy the safety net.

[taught_me_patience]

4. This poll shows the ignorance of the American public regarding finance

Finance classes ought to be manditory in high school

[JDPriestly]

5. Let the creditors take the hit.

Share the losses. The creditors took all the profits when times were good.

Now, times are bad due primarily to their miscalculations about their investments and lending, their ignorance of economics, their lack of common sense, their failure to find out what was going on in the lives of the countries and people to whom they were so lavishly lending their money. Let them pay for their mistakes.