What if anything should people do to prepare for possible default?

[Frugal]

I still think the chances are only 10-20% we default Aug. 2nd. However, given that it is a low chance, what if anything are you personally doing financially to prepare? Would like to hear if people are taking seriously the potential threat of default, or if people simply are not worrying about it.

[maat55]

There will be no default. At worst, the government will have to prioritize its spending to match its revenues. Default means they chose not to pay the interest bill of only 6-10% of revenues.

Personally, I am buying 3 months worth of food storage. Not for any default, but for any emergency including the possibility of a dollar collapse.

[rmiecz]

^^^how would such an event come to fruition? Just curious. But being an optimist, I can only hope that with the 168 hours each week provides, there is in the works some catastrophe proofing team that can come up with some creative solutions on short notice. .....so basically, nothing

[Snodog]

Not worried about it. They will raise the debt ceiling one way or another. Then maybe we can focus on a real crisis(jobs) and not a made up one.

[krantcents]

I think it is 99.9% guaranteed it will be resolved by August 2nd! I may not like the result and our credit rating could still slip, but it will be resolved. This situation makes me realize we need a huge change in Washington, DC. We are at a time to throw the "bums" out. The people in Congress need to work together to resolve our country's problems, otherwise why are they there?

[SeanH]

I opened a Roth IRA 3 minutes ago. I don't know what will happen, but if there's a big drop I'll be buying in. As of my last look at the WSJ the House plan is on rotten ice.

[uRabbit]

I'm just glad that I got my new - better - credit card before the rates go up!

[maat55]

Originally Posted by uRabbit

I'm just glad that I got my new - better - credit card before the rates go up!

Rates do not matter when you pay in full.

[disneysteve]

Originally Posted by Frugal

what if anything are you personally doing financially to prepare?

Absolutely nothing. It is a non-issue as far as I'm concerned.

[minnie1928]

Once again, I agree with DS.

[Scanner]

I think it is 99.9% guaranteed it will be resolved by August 2nd! I may not like the result and our credit rating could still slip, but it will be resolved. This situation makes me realize we need a huge change in Washington, DC. We are at a time to throw the "bums" out. The people in Congress need to work together to resolve our country's problems, otherwise why are they there?

I agree. . .but I am not sure if it's the actual politicians that need to be thrown out as much as the modus operandi.

80% of Americans believe in a "balanced approach" like Obama said (like that or not - that's fact).

I see the major dysfunction with the House and The Senate is Boehner keeps trying to appease the Tea Party Nutjobs and Reid keeps trying to appease the Bleeding Heart Liberals.

What is to stop Congress with getting a quorum of Moderates, both Democratic and Republican, in each section of Congress to forward a bill like the Bowles/Simpson Plan that was proposed 8 months ago? (that included tax hikes and deep spending cuts to entitlements).

The leaders in each House should be marginalizing the Nutjobs saying "Well, if you aren't going to cooperate, then I'll go talk to the Democrats" (if you are Boehner). Reid should be saying the same thing.

But Americans very well know which legislative branch is being more unreasonalbe.

You had Democrats at one point agreeing to 9 Trillion in cuts to entitlements for a very modest tax. . .the Republicans wouldn't accept it.

Again, marginalize the nutjobs.

[maat55]

[quote]

Originally Posted by Scanner

I see the major dysfunction with the House and The Senate is Boehner keeps trying to appease the Tea Party Nutjobs and Reid keeps trying to appease the Bleeding Heart Liberals.

You mean those nutjobs that believe in balanced budgets and responsible government?

What is to stop Congress with getting a quorum of Moderates, both Democratic and Republican, in each section of Congress to forward a bill like the Bowles/Simpson Plan that was proposed 8 months ago? (that included tax hikes and deep spending cuts to entitlements).

Funny thing about tax hikes and spending cuts is that the tax hikes go through, but the spending does not. To truly fix a spending problem, you force the spending cuts first.

The leaders in each House should be marginalizing the Nutjobs saying "Well, if you aren't going to cooperate, then I'll go talk to the Democrats" (if you are Boehner). Reid should be saying the same thing.

IMHO, everyone should do exactly what they think they should do and let the chips fall where they may.

But Americans very well know which legislative branch is being more unreasonalbe.

The one with no proposals?

You had Democrats at one point agreeing to 9 Trillion in cuts to entitlements for a very modest tax. . .the Republicans wouldn't accept it.

Again, that old game does not work.

Again, marginalize the nutjobs.

You mean nutjobs like the Founders?

[Frugal]

I am wondering what will happen now that the Senate did not pass the Reid bill.