America’s Credit Rating Went Down. So What?
Slate Money
00:00
The Resilience of the Markets to Change
The cost of default to a lender in the medium term is zero. The people who get hurt from a US treasury default are not actually US treasury bond holders so much as they're everyone else who interacts with the financial system. Even though this might signal something bad for treasuries in the long term, no one's going to change their behavior now because they like how it is and there's no alternative.
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Transcript
