U.S. Markets closed
7 / 13

Debt Default Contingency Plans

People walk around the WWII Memorial and the Lincoln Memorial in Washington, notwithstanding the memorials have been closed to the public, due to the government 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.