[Bank chiefs send US debt default warning - FT.com]:
Wall Street’s leading chief executives intervened in the US debt debate on Thursday, writing to President Barack Obama and Congress to warn of “very grave” consequences of a default and urging them to cut a deal “this week”.
Lloyd Blankfein of Goldman Sachs and Jamie Dimon of JPMorgan Chase were among 14 chief executives of banks and insurers who signed the letter, along with Rob Nichols, the head of the Financial Services Forum, the umbrella association for the biggest financial groups in the US.
The letter said a default, which is still perceived as unlikely, or a downgrade from a triple-A credit rating, which analysts believe is increasingly likely, “would be a tremendous blow to business and investor confidence – raising interest rates for everyone who borrows, undermining the value of the dollar, and roiling stock and bond markets”.
It comes after bankers, from senior executives to traders, have been becoming frustrated that the Federal Reserve is refusing to engage in scenario planning for a US downgrade or default.
This also comes within a couple of years of the US government/taxpayers saving the banker's collective-asses from financial ruin.
The chain of events was
1. bankers trash world economy.
2. US government goes deeply in debt to save banks and financial system from collapse.
3. bankers demand US cut its debt or risk financial downgrade. BUT..... don't raise taxes on the bankers to do it just cut benefits to the lower classes.
We need politicians that look out for the people and not the bankers.
tnb
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