Thursday, 23 June 2011

Two Quick Questions On The Implications Of Not Raising The Debt Ceiling

1. If Wall Street pricing is based in large part on expectations, and if the common wisdom on the street is that the debt ceiling will be raised before the August 2 drop dead date projected by the Treasury, how big will the market reaction be if the ceiling isn't raised by then or its estimate of what will happen doesn't change.

2.  Greece's GDP is a rounding error compared to the size of the U.S. economy.  So if the possibility of a default by Greece roiled financial markets last week, what will the increasing possibility of a technical default by the U.S. do to investors?







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