States ‘Can Ill Afford’ Debt Default, Governors Chief Says

U.S. states “can ill afford” a federal government default if talks in Washington fail to raise the nation’s debt ceiling, the chair of the National Governors Association said.

States “are in a fragile state of recovery” and the debt-ceiling debate is undermining consumer and business confidence, Washington Governor Christine Gregoire said today at a conference attended by 32 state leaders in Salt Lake City, Utah.