Default by Debt Ceiling? ‘Complete Nonsense’

BY Paul Solman  August 1, 2011 at 5:49 PM EDT

Editor’s Note: On Monday’s NewsHour Paul Solman reports from the trading floor of Natixis CIB Americas to see how the stock market was reacting to news of the debt ceiling deal.

Turns out the market is reacting positively. And as for the dramatic rise in interest rates some said the U.S. would have to pay if the ceiling was reached?

“To call those statement of default hyperbole would be an understatement,” Abdullah Karatash, Natixis’ head of U.S. bond trading, told Paul.

Paul Solman: So you think it was just nonsense?

Karatash: It was complete nonsense.

Watch a preview of Monday’s broadcast report above.

This entry is cross-posted on the Rundown- NewsHour’s blog of news and insight _Follow Paul on Twitter._