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Debt Default Contingency Plans

Sen. Chuck Schumer, D-N.Y., points to a sign during a news conference on Capitol Hill in Washington.

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.