"The market for betting on a US default just sprang to to life"

10/10/2013 - 00:00

As we’ve been telling you, the cost of insuring US government debt against default has been surging in recent weeks, thanks to the US government shutdown. If the government doesn’t agree to some solution and vote to raise the US debt ceiling sometime between late October and early November, it will run out of money to fund federal government operations. No money means no payments to the legions of US bond holders, which means default.