"No one … could possibly say that there is no chance of a catastrophic outcome" JPMorgan Chase CEO Jamie Dimon told analysts last week.
The more likely scenario that investors are preparing for is that a temporary deal is struck to lift the debt ceiling. But such a makeshift plan is unlikely to allow the U.S. to maintain its AAA grade with bond rating companies. Citigroup analysts say the odds are 50-50 that the U.S. will be demoted to an AA rating for the first time ever.
Such a downgrade could lead to a temporary market panic
Tuesday, July 26, 2011
JP Morgan's CEO agrees with me: