
What happens if the U.S. government can’t pay its bills?
Exchanges
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The Risk of Missed Payments in the Treasury Market
If the deadline passes and we do have to stop payments, what could the market impact be? We probably will see some of the market impact even before any stoppage of payments. The things I would expect to see would be a substantial increase in equity volatility. But that kind of cuts both ways, because right now, if you look at treasury bills that are maturing right around the various deadlines they are essentially cheaper.
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