A Couple Predictable Unintended Consequences from a US Debt Downgrade and Default

1. Money Market Funds will have to move out of any AA US treasuries and bonds. The will move en mass. Their combined action will seize up the short term markets. Very bad.

2. The GSEs, Fannie MAE and Freedie Mac will need to fold into receivership from their current conservatorship. Now that will set off pure liquidation and cause all related debt markets to seize up. Very very bad.

3. Meanwhile the jokers in Congress and the President who's sided with Wall Street and has condoned about $7.5 trillion in bailouts to four banks over 3 years, are arguing about $50 to $100 billion.

Source: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/draghi/Debt%20Plan%20Summary_0.jpg