In an interview with Le Monde, Rogoff explained that sovereign default is a routine event and far different from the collapse of Lehman Brothers.
The real question is: Can a country survive with a bankruptcy? For Greece and Portugal, the best solution is probably to remove a large portion of their debt in order to regain growth. It would not be the end of the world.
Europe is going a little fast comparing this event to the bankruptcy of Lehman Brothers . Bankruptcy of state is actually quite trivial and we know how to handle the problem of restructuring. Even if membership in the euro zone ends up changing...
This of course doesn't mean he supports the same for the US...
Raising the debt ceiling is necessary, provided it is accompanied with rules for budgetary discipline. Otherwise, the problem will repeat itself year after year. And one day, the U.S. could well end up by making default. This crisis is first constitution. If we remove the ceiling on debt, I do not think it will be Armageddon.
Microsoft just reported record fourth quarter and fiscal year 2011 earnings today with yearly revenues at $69,94 billion, representing an increase of 12% from 2010. Operating income for the year was at $27.16 billion and net income was at $23.15 billion, 13% and 23% increases. Earnings per share for the year were at $2.69. The company's fourth quarter revenues were at $17.37 billion, an 8% increase year over year. Operating income was at $6.17 billion and net income was at $5.87 billion, a 4% and 30% increase respectively. Earnings per share were 69 cents.
Officials from Standard and Poors will brief House Republican freshmen on the consequences of default if the debt limit isn't raised.
Rep. Nan Hayworth (R-NY) is hosting the meeting at 3 p.m. Thursday, according to her office.
The first-term congresswoman is among the House's most conservative members, and like many fellow freshmen, was backed by the "tea party" in 2010.
Many GOP freshmen are members of the so-called "default caucus" of members unwilling to raise the debt limit under any circumstances.
The White House confirmed earlier this week that administration officials have been in contact with the major credit rating agencies to assure them that the government will not default, and that lawmakers will take up significant deficit reduction measure.
"We've been trying to make them understand that Washington and the President is committed to bringing down the deficit and controlling spending," White House Communications Director Dan Pfeiffer said, responding to a question from Business Insider.
Spokespeople for the three major credit rating agencies refused to comment on substance of conversations with administration officials on plans to avert downgrade, citing longstanding policies of not discussing conversations with issuers.
A spokesperson for the Treasury Department, which has handled most of the communication with the agencies, did not return repeated requests for comment.
How strong is your desire to get out of debt? What are you willing to give up, sell, or live without in order to meet that dream head on? Would you be inclined to sell your beloved car in order to bring your balance sheet back into the black? In many cases, selling your car [...]