Debt Default Means New Recession
Tim Geithner has taken heat for suggesting that a debt default could lead to a double dip recession, but unfortunately he's absolutely right.
There's no doubt that Tim Geithner is right to say that a debt default would result in a double dip recession. If anything, Geithner understates the case: a default would send interest rates so high that business investment, home purchases and more would cease. In fact, even the credible threat of default would have some pretty serious consequences. By threatening default, for all intents and purposes, Republicans are playing with fire.