The Worst Case for Default

The worst case from a financial markets perspective is if the treasury fails to pay the coupon on its bonds. The money that they need also goes to pay social security payments, Medicare, Medicaid, pay federal workers and all that stuff could get cut off as well. Janet Yellen doesn't like the idea of making a distinction between those kind of promises and the promises to pay the coupons on treasury bonds. But I feel like at this point, the definitions start becoming very fuzzy and do you really care what the reason is for not getting your paycheck? That would be catastrophic in and of itself.