Default on U.S. Debt: Disaster or no big deal?

(KTVI)-After two weeks of a partial government shutdown and threats that the United States might default on some of its debts, it looks like House Republicans and the White House are making progress to put federal workers back on the job and raise America’s debt limit. On Thursday, the United States could have potentially defaulted on some of the debts it owes if Congress doesn’t increase the government’s borrowing authority, called the debt ceiling. Some members of congress, especially Tea Party affiliated Republicans have said default would be no big deal.

More: Federal Furloughs, U.S. Debt Default: What do they mean?

The sticking point had been conservative insistence that the Affordable Care Act,  A.K.A. Obamacare,  either be defunded or repealed and that big spending cuts be made in the budget. If there had been no agreement, the U.S. could have defaulted on some of its bond payments.

Charles Jaco sits down with Bill O’Grady, chief market strategist for St. Louis-based Confluence Investment Management, who says a default would probably be a financial disaster that might eventually hit every American.

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