I'm afraid sometimes certain individual cases of defaults are unavoidable. What we should do is to step up monitoring, properly handle relevant matters, and ensure there is no regional and systemic financial risk.
Sentiment: NEGATIVE
I certainly don't want our nation to go into default, but at the same time, I'm very concerned about our ongoing debt problem.
A default on our debts as a result of not meeting our obligations would be a disaster for the stock market, and Americans would see their retirement funds shrivel up.
A good default, like Portugal or Greece, would be very good for the private equity business.
The Greek debt issue, for example, is such a threat because if that country ever defaulted, it might cause some bank that's 'too big to fail' to actually fail.
The American people were really not 100% convinced that this idea of default was really going to occur, and I think the media, current company excepted here, did not help in that regard because they confused the American people about what default actually meant.
After everyone has had a chance to bluster, posture, and pontificate, we are left with one basic question: under any foreseeable circumstance, would it be in our national interest to default on our debt? The answer is unequivocally no.
The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.
There's not a doubt in my mind that you will see a spate of municipal-bond defaults.
I don't know of any of us that want to see any kind of default happen.
If we reach the debt ceiling, we don't have to default. Getting to that point just won't allow us to reach new debt.