In this video, Larry Kudlow is speaking with David Goldman, member of Institutional Investor’s All-American fixed income research team, and Dan Mitchell of CATO Institute about fears over the debt ceiling and the consequent threat of default.
Kudlow begins the video by expressing concern about the debt ceiling and a downgrade by Moodys…most particularly about the fact that we are headed for a Greek style fiscal collapse (editor’s note – who will bail US out?) because of the overspending in Washington and the creeping up of interest rates.
Dan Mitchell talks about the Sovereign Debt Bubble if Moodys downgrades – “…everyone rushes to the exits, and remember what happened in Ireland, and Greece and Portugal, and other welfare states, there weren’t a lot of warning signs, it happened not quite overnight, but it happened very fast…”
David P. Goldman, “…When I hear Larry Summers say it’s going to be Lehman on steroids, what I worry about is that Obama is going to try to engineer a crisis and blame the Republicans for it…I’ve been trying to tell the Republicans, do not push this into default because then Obama will act like a socialist dictator and try to revise the system by emergency.”