Wall St is going to try to put the blame on the WH if US defaults

[sasha031]

Why You Should Blame Tim Geithner, Not The GOP, If The US Defaults

Yesterday Tim Geithner sent another letter to Congressional leadership urging them to cleanly pass the debt ceiling fast.
The Treasury's special accounting tricks will only last until August, he says, at which point he'll lose his borrowing authority.
The nut paragraph in his letter is this one: "As I have written previously, default by the United States on its obligations would have a catastrophic economic impact that would be felt by every American. A broad range of government payments would have to be stopped, limited or delayed, including military salaries, Social Security and Medicare payments, interest on debt, unemployment benefits and tax refunds. A default on the Nation’s legal obligations would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans. Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover."
He added "Failure to increase the debt limit in a timely manner would threaten this position and compromise America’s creditworthiness in the eyes of the world. Every Secretary of the Treasury in the modern era, regardless of party, has strongly held this view. Given the gravity of the challenges facing the U.S. and world economies, the world’s confidence in our creditworthiness is even more critical today."


Read more: http://www.businessinsider.com/tim-geithners-fault-if-the-us-defaults-2011-5#ixzz1LIol7p00