What Would A Debt Default Mean For US Bond Holders?

05:28

October 10, 2013

A sign closing the entrance is posted outside the Pennsylvania Avenue of the Treasury Department, Wednesday, Oct. 2, 2013, in Washington. (Carolyn Kaster/AP)

On October 17, the U.S. could default on its debt obligations if Congress doesn't agree to raise the debt ceiling before then.

So what would that mean for the bond holders that have lent the U.S. money?

NPR Planet Money's David Kestenbaum breaks down what a default would mean for each of the country's lenders, as well as recipients of pensions and social security.

Guest

David Kestenbaum, correspondent for NPR, covering the global economy for NPR's multimedia project Planet Money.

This segment aired on October 10, 2013.

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