How much spending can be cut (agreed to by all those elected officials who all have a few programs they will go to the wall for)In the next 2 weeks?
If nothing is done the cost of financing will go up. More of the govts revenue will go towards servicing the debt. I have to think if we default over this issue the ratings companies might take longer to raise our rating back up than they would have in the past.
There will certainly be some checks not paid. Most likely something like not paying doctors and hospitals everything owed them (my guess. easier to stiff an institution than someone relying on a check to eat or pay rent). Defense contractors,stuff like that. Big ones will continue to pay salaries for awhile anyway.
Mitch could put together a bailoutplan in about 10 minutes ~ he's a smart guy.
His price is going to be that he gets to be President.