As I post this, the stock market futures are off about one percent and it’s looking like day seven of the government shutdown may take a toll on the US financial markets.
Personally, I think apprehension over the upcoming corporate earnings reports have the markets more roiled than the media-hyped threat of America defaulting on its debts.
America will not default.
Don’t believe me?
Would you believe the credit agency Moody’s CEO, Raymond McDaniel, who said in an interview:
It is extremely unlikely that the Treasury is not going to continue to pay on those securities.
Hopefully it is unlikely that we go past October 17 and fail to raise the debt ceiling, but even if that does happen, then we think that the U.S. Treasury is still going to pay on those Treasury securities
Last week, CNBC anchor Michelle Caruso-Cabrera, educated the panel on MSNBC’s Morning Joe about what defines a default. In under five minutes, she gives perhaps the best explanation of why hitting the debt ceiling is not “Armageddon,” I have heard to date.
Or maybe I just have a thing for brunettes.
But I digress.
Give it a listen.
I’ve going to get on with my day, maybe I’ll start with a cold shower.