Hard at work despite the government shutdown, Treasury authors a report warning of "catastrophic" consequences if Congress doesn't raise the debt ceiling and the U.S. is forced to temporarily default. The executive summary: 2008 will be considered a tea party by comparison.
Taking us back to August 2011, Treasury reminds of the harm caused by just the threat of default then. To review: The S&P 500 declined 13% in about a month. To review further: This was also in conjunction with the EU debt crisis bubbling over. To review even further: This washout set the stage for a 50% increase in the market in the ensuing two years.