DC Stalemate: What’s Really at Stake?

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Oct. 15 (Bloomberg) –- American Bankers Association President and CEO Frank Keating discusses the government shutdown and America’s fiscal future. He speaks with Mark Crumpton on Bloomberg Television's "Bottom Line (Source: Bloomberg)

Consequences of inaction, obstruction and delay?

They really vary from puzzlement, befuddlement, disbelief to raging anger.

How can this be happening?

It looks like the members of the house and senate are philosophers arguing over how many angels can fit on the head of a pin.

These proposals appear to be completely noncontroversial but that is not the way it is read internally.

The reason we have one before our days is because we -- 24-j hour days is because we expect certainty.

When are they going to get this done so we know what tomorrow will look like?

It is very frustrating.

Last month, you wrote an op- ed in "the washington post" and it read, citizens nationwide are frustrated with the political stomach in washington.

Our nation's capital integrity should not be used as a bargaining chip.

You believe this nation's honor is at stake.

How so?

Anytime there is the full faith and credit obligation of the united states to any country, person, entity, that is a solemn contract.

The united states as a reserve currency, the use of treasuries as the lubricant of financial transactions all over the world.

You simply can't play with this.

It is like your 10-year-old child saying, is there such a thing as gravity?

What happens if i jump off the cliff?

You will not let him do it because he will fall and break his leg or worse.

To have people say, it will not be any big deal, it compromises the integrity.

It will dramatically raise interest rates.

It may not happen overnight but this is just completely mad as far as most of the community bank people are concerned.

At the father of a 10-year- old, i couldn't agree with you more in that sense.

We did get headlines a while ago that fitch has put the u.s. credit rating on negative watch.

What is the implication of that?

The implication of that as you well know is interest rate risk.

If i am not sure you're going to pay me back, you're going to have to pay a higher rate.

If i know you will not pay me back, i am not going to deal with you.

Maybe we can limp through the first of november but sometime, someway way, you have to prioritize your payments.

When you do that, obligations will perhaps be paid for the next several weeks.

After that, when grandma doesn't get her social security check, that is a default.

I can't imagine we would do this to ourselves.

You also write about what you call the patriotic compromise.

That republicans need to be more willing to say yes and democrats must be willing to say no.

In which areas are these compromises not only unlikely but necessary for the country's long-term fiscal health?

It is not the hatfields and the mccoys.

We have two parties in this country.

For over 200 years we have had individual third parties disappear into the sunset.

These parties, my grandfather was a member of congress, a democrat.

I am a republican.

I would not sit across the table and spit at him.

The president needs to lead.

Everybody can sit around and say, we are not going to default.

The united states is too great a country.

We have always paid our bills and here we go, over the cliff.

We simply cannot do it.

You were governor of oklahoma when the federal building was bombed.

An antigovernment mindset was the reason given by the men who carried out the did -- the attacks.

Are you troubled by what nancy pelosi told my colleague is an antigovernment ideology?

A lot of people who are elected to the house and senate have never run for sheriff, been on a school board.

They see this city not as general washington's city, but as the gm stable.

I don't see it that way.

I see this as the place where john marshall served and the place where abraham lincoln presided.

The place where john adams -- this is a magnificent story for the world.

If you have disagreements, i get my vote, you get your vote.

I don't burn the house down because i lose.

The bottom line for these small businesses, a lot of temporal businesses, -- them rural businesses, a lot of them are suffering.

We have had traditionally perhaps unsustainable low interest rates.

If you want to get the economy cranking, all you have to do is tell somebody, i am not sure that this rate is going to survive very long.

I am not sure whether your business will survive very long.

There is great uncertainty.

As you well know, people don't make decisions to buy or sell if there is uncertainty.

You need whatever certainty you can have.

Frank keating, president and ceo of american bankers association, a pleasure to have

This text has been automatically generated. It may not be 100% accurate.


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