America’s debt ceiling
The mother of all tail risks
A US technical default would convulse markets. Nothing else is certain
Jun 23rd 2011 | WASHINGTON, DC | from the print edition
AMERICA’S debt is supposedly the world’s safest, backed by trustworthy courts and an unrivalled capacity to raise taxes and print money. Yet thanks to a quirk of law, talk of default is not confined to the European side of the Atlantic.
via America’s debt ceiling: The mother of all tail risks | The Economist.