Not necessarily. A default can mean failing to pay something required by law. It was termed "selective default" or "prioritized payments" depending on who you ask. There was concern that we might not be able to pay interest and principal payments for bondholders, which is why Geithner even mentioned it, but it was a little more complicated than that. By then, of course, it was too late. The media already ran with it.
Republicans were dismissing default, but also dismissed seniors not getting their SS check or doctors not getting their Medicare payments for services already rendered. Either way, someone wasn't going to get paid.
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Date: 1/8/11 15:59 (UTC)Republicans were dismissing default, but also dismissed seniors not getting their SS check or doctors not getting their Medicare payments for services already rendered. Either way, someone wasn't going to get paid.