IMF analysis rules out short-term risk of a U.S. government default

09/2/2010 | Washington Post, The · MarketWatch

The U.S. government doesn't face any immediate risk of being forced into default by the sovereign-debt market, but the long-term picture could be quite different, according to an International Monetary Fund analysis. There is a 75% chance that the U.S. can take on additional debt without being punished by a bond market that demands unsustainable interest rates, the IMF said. The odds drop to a troubling 50-50 if fresh borrowing tops 50% of the gross domestic product, the IMF said.

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Washington Post, The · MarketWatch

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