Originally Posted by AustinChief
KCNative, You have been backed into a logical corner I'm gonna love seeing the contortions required to somehow get out of this one.
If a more extensive govt shutdown would be a default, why is the current one NOT a default? We are NOT talking about the Treasury having to do ONE DAMN THING. Instead the Executive branch simply stops the various departments (that are not OBLIGATED payments) from requesting as much from the T. That is EXACTLY what is going on right now under the current shutdown. (which is why the T has been able to stretch the time to a true default out a bit)
It's not about logic. It's about understanding how fund flows actually work and how the real world works.
You've had another person tell you the exact same thing. I've listened to multiple fixed income managers say the same thing over the last two weeks.
You can believe it or not. Or, you could actually go look it up for yourself (I'm not holding my breath).