J. P. Morgan banker on debt default repercussions
Calling the money markets as 'fickle as a rabbit', Jamie Dimon of JPMorgan Chase spoke Saturday cautioning people (I read "republican hostage takers") on the looming disastrous consequences of the US Federal Government defaulting on loans, describing the potential impacts as something
“You don’t want to know,” Dimon said when asked what would happen if the US is forced into default because Congress did not raise the country’s borrowing limit.
“It would ripple through the world economy in a way that you couldn’t possibly understand,” he said at a discussion held by the Institute of International Finance, a leading forum for the world’s banks.
He said it would shock the money market, where trillions of dollars in cash are invested in ostensibly top-quality securities like US debt based on expectations that the borrowers will not default.
While this is the sort of person I would not normally trust, on THIS particular topic, I imagine he is telling the truth.
Defaulting on our debts and even the threats to do just that are the pinnacle of irresponsibility.
“As you get closer to it, the panic will set in,” he said.
On the other hand, he emphasized: “The US cannot default. I think every responsible person knows that.”
We. CANNOT. Default.
Dimon was speaking to a meeting of international financiers, but these rather simple words, I believe, are for our politicians, not for people who actually understand the realities of mega-finance.
Republicans have crossed way over the line of acceptable behavior, into the interstellar space of Irresponsible and Negligent Misconduct.