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Debt Default Contingency Plans

Visitors look toward the Ohio Clock outside the Senate Chamber on Capitol Hill in Washington. The Ohio Clock has stood watch over the Senate for 196 years. It stopped running shortly after noon Wednesday. Employees in the Office of the Senate Curator ordinarily wind the clock weekly. But they are among the thousands of federal employees furloughed under the partial shutdown.

Debt Default Contingency Plans


Warren Buffett likens it to a nuclear attack. Economists warn that government spending on programs like Social Security would plunge. The Treasury says the economy would slide into a recession worse than the last.

Yet you wouldn't know that a U.S. debt default could amount to a nightmare from the way many companies and investors are preparing for it: They aren't. The assumption seems to be that in the end, Washington will find a way to avert a default.


Reporting by the Associated Press.