Debt Ceiling: Questioning the Impact of a Default

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Oct. 8 (Bloomberg) –- Bloomberg’s Phil Mattingly reports on some Congressional Republicans questioning the impact of a default as the debt ceiling deadline looms. He speaks with Stephanie Ruhle on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Basically what obama administration officials have been saying for weeks, there is complacency about the true risk dealing with that october 17 deadline.

They may have a point.

Congressional republicans are becoming increasingly skeptical about that deadline and also what would occur if we went over it.

I spoke to nick mulvaney from south carolina and he had this to say.

The log requires the treasury secretary to manage the debt -- the lot requires the treasury secretary to manage the debt.

So, yeah, we are a little worried that there is the exaggeration because most people believe they have the ability to prioritize.

He believes that the treasury secretary has the ability to prioritize what would get paid.

What they are saying is with legislation or without it, jack lew has the ability to do without it and they could handle this.

There is also another wing of the party.

Another republican said last week that it might actually stabilize world markets if we were to default.

I don't think all republicans are on that line . what are they proposing to do ? go over the edge?

Not quite.

They have a bill right now that would force them to prioritize payments.

Interest payments, but also the principal, maybe social security as well.

That is there.

They have a version of that in any senate.

Democrats have rejected that out right.

So as the treasury

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

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