Thursday, October 3, 2013

The Tea Party Taliban is playing with risky toys

We're waist-deep in the Big Muddy, and the big fools keep pushing on ...

Treasury Says Mere Prospect of Default Endangers Economy
By ANNIE LOWREY
The New York Times
October 3, 2013

WASHINGTON — The debt-limit impasse could cause credit markets to freeze, the dollar to plummet and interest rates to rise precipitously, the Treasury Department said in a report released Thursday. A default might prove catastrophic, the report said, and could potentially result “in a financial crisis and recession that could echo the events of 2008 or worse.”

“As we saw two years ago, prolonged uncertainty over whether our nation will pay its bills in full and on time hurts our economy,” said Treasury Secretary Jacob J. Lew in a statement urging lawmakers to act. “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.”

Full story in The New York Times.

And now, a musical interlude ...