Nightly News   |  October 15, 2013

‘Global’ consequences if U.S. defaults on debt

Andrew Ross Sorkin, of CNBC and The New York Times, explains why it’s so important that the U.S. avoid defaulting on its debt – and how the damage could impact Americans.

Share This:

This content comes from Closed Captioning that was broadcast along with this program.

>>> we're seeing the crisis play out on wall street , stocks took a hit today, all three major indexes were down, and as we mentioned at the top of the broadcast we're getting the first signs of serious concern in the credit ratings market. the fitch ratings agency has put the united states triple a rating on a possible downgrade if of course this doesn't get resol resolved. andrew, the public is now aware they are playing with fire , and they're playing with company money, our money. what happens if this happens?

>> if this happens, we are -- the 2008 financial crisis will look like child's play if we actually go into extra inning inningin inningininnings. if we default or even get close to the possibility of defaulting, all of our assets will skyrocket, if somebody is going to loan you a dollar and they think they won't get paid back when they should get paid back they charge you more. and that will impact everything, how much money the country has, a 1 percentage point increase is a $20 billion cost annually, that is money no longer going to goods and services for the taxpayers. it will go towards interest payments, your mortgage payment will go up. that is what we're talking about here, and it will be global.

>> on that note, i guess we'll be checking back in with you tomorrow night. do you think this is ninth inning?

>> i think we're in the ninth inning and i hope we don't go into extra