U.S. Markets closed
13 / 13

Debt Default Contingency Plans

International Monetary Fund (IMF) Managing Director Christine Lagarde speaks during a media availability, during the World Bank/IMF Annual Meetings at IMF headquarters 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.