Wednesday, October 16, 2013

More on Street and "default"

And here's another good article on the nuts and bolts of how Wall Street would see and deal with so-called "default":
""If we slide past the 17th without an agreement to increase the debt limit, it will be bad for the economy for sure, but it won't mean a default," Jim Bianco, president of Bianco Research LLC in Chicago, said by telephone on Oct. 13. "That would set up the most bullish scenario you can imagine for Treasuries, which would be that the economy is collapsing and the Fed is likely throwing even more money at it.""
Jim Bianco is one of the most knowledgeable guys on the planet when it comes to this stuff.
BTW, "the Fed is likely throwing even more money at it" is a Wall Street euphemism for the Fed buying Treasuries.

-- Jack Krupansky


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