Possible Repercussions Of A U.S. Debt Default At Home And Abroad

Possible Repercussions Of A U.S. Debt Default At Home And Abroad

World leaders, bankers and political strategists warn of short and long term repercussions if Congress fails to raise the debt limit. Understanding the risks of a U.S. default at home and abroad.

President Barack Obama plans to nominate Fed Vice Chair Janet Yellen to succeed Ben Bernanke as head of the Federal Reserve. Yesterday both Obama and House Majority Leader John Boehner seemed as far apart as ever on the two questions roiling Washington: ending the current partial shutdown of the federal government and agreeing to raise the U.S. debt limit before an Oct. 17 deadline. The partial government shutdown has meant inconvenience for many and hardship for some, but most agree that repercussions of a failure to raise the debt ceiling are unpredictable and potentially devastating. Diane and her guests discuss what happens if we default.

Guests

Sheila Bair

senior adviser, The Pew Charitable Trusts and former chair, Federal Deposit Insurance Corporation; author of "Bull By The Horns: Fighting to Save Main Street From Wall Street and Wall Street From Itself."

Dean Baker

co-director, Center for Economic and Policy Research and blogger, Beat the Press; author of "The End of Loser Liberalism: Making Markets Progressive."

Kevin Hassett

director of economic policy studies, American Enterprise Institute.

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