House Republicans were cautioned Thursday in a closed door meeting with credit rating agency officials that a death spiral in the bond market was one of the possible outcomes in the event of default.
One official warned of a worst-case scenario in which a default on the nations credit could result in a rapid drop in bond values, sparking chaos in the markets a dramatic warning as Washington worked on a possible deal on deficit reduction and an increase in the debt limit.
Credit agencies warn GOP of 'death spiral' - Marin Cogan - POLITICO.com
One official warned of a worst-case scenario in which a default on the nations credit could result in a rapid drop in bond values, sparking chaos in the markets a dramatic warning as Washington worked on a possible deal on deficit reduction and an increase in the debt limit.
Credit agencies warn GOP of 'death spiral' - Marin Cogan - POLITICO.com