At Deficit Talks, Geithner Explains Default Realities

Jul 8, 2011 7:59am

Treasury Secretary Tim Geithner's presentation to congressional leaders yesterday was aimed at convincing any of those who remain skeptical that the August 2 deadline is real, sources tell ABC News,

The Treasury Secretary walked through specific debts owed on certain days. For instance, $87 billion comes due on August 4. How will the U.S. pay that debt if is has no money?

Geithner walked through not only the specific debts and obligations, and the reality of the depleted treasury, but what the reactions would likely be in the markets, among bond-holders and lenders, for ratings agencies. It wasn't pretty. And no one there disagreed with his bleak predictions.

-Jake Tapper

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