Treasury: Default Could Be Catastrophic

Whether or not the U.S. actually defaults on its debt, just getting dangerously close to the debt ceiling is certain to have a grave economic impact, according to a new report by the Treasury Department. The report, released Thursday, suggests a default might lead to “a financial crisis and recession that could echo the events of 2008 or worse.” But, in a statement to lawmakers, Treasury Secretary Jacob Lew noted that simply “postponing a debt ceiling increase to the very last minute is exactly what our economy does not need—a self-inflicted wound harming families and businesses.” The report urges members of Congress to remember the impact that 2011’s debt-limit standoff had on the confidence of small businesses, consumers, and stock market investors.