Yves Smith

Greenspan on Meet the Press: No Chance of Default. Really?
By Tom Blumer | August 8, 2011 | 1:36 AM EDT

We've just spent the past month or so having politicians and the press tell us that if there was no debt-ceiling deal by August 2, the government might default on its debts (of course, Tim Geithner and Barack Obama could indeed have strategically defaulted if they had wished, but work with me here).

But Sunday on Meet the Press, in a remark I expect will not be relayed much if at all by the rest of the establishment press, Alan Greenspan said that default is impossible -- which puts him directly at odds with the rest of Washington's elites and Ben Bernanke, his successor as Federal Reserve chairman. On July 14, Bernanke said: "A default on ... (U.S. Treasury) securities would throw the financial system ... potentially into chaos."

Wait until you see the reason why Greenspan says default is impossible, as carried at CNBC's web site in an item by Patrick Allen:

Overnight Howler at the NYT's 'Room For Debate': 'Default Is Impossible'
By Tom Blumer | April 20, 2011 | 1:13 AM EDT

On Monday, the New York Times assembled a panel of alleged experts in its Room For Debate section. Each weighed in on Monday's ratings agency outlook downgrade by Standard and Poor's in an item entitled "Is Anyone Listening to the S.&P.?" (Don't ask me why "the" is there. It shouldn't be; the item is about the firm Standard and Poor's, not "the" Standard and Poor's stock index.)

One of the contributors was Yves Smith. Ms. Smith "writes the blog Naked Capitalism. She is the head of Aurora Advisors, a management consulting firm, and the author of 'Econned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism.'"

Wait until you read Ms. Smith's reaction to S&P's move after the jump (bold after title is mine):