Zandi Warns Even Short Default Would Be Costly for ‘Generations’

Even a brief U.S. government default on its financial obligations would result in added costs to U.S. taxpayers for decades to come, according to Mark Zandi, chief economist at Moody’s Analytics.

“Even if resolved quickly, Americans would pay for this default for generations, as global investors would rightly believe that the federal government’s finances have been politicized,” Zandi wrote Tuesday in a note to clients. That’s even as the economy withstands a momentary blow to financial markets, he said.