JP Morgan CEO Jamie Dimon told Punchbowl News that even getting close to the debt ceiling could be catastrophic.
Said Dimon: “This can cause panic. And you’ve seen, panic isn’t necessarily a rational thing. People panic. And when you see people panic — that’s ’08, ’09 again, and that’s really what you want to avoid.”
He added: “I think there’s a higher chance of a mistake here because of the politics of the situation.”
And more: “On the default itself, think of it in two pieces: the run-up to a default and an actual default. It’s even bad to have the run-up to default because that can question American debt ratings. We’re foundational to the economy of the world.”
Brookings: Don’t count on the House discharge rule to raise the debt limit.
