Elizabeth Warren wrote the article The Coming Economic Crash — And How to Stop It on Medium.
The administration may breach the debt ceiling in September, leading to economic turmoil that top economists say would be “more catastrophic” than the collapse of Lehman Brothers in 2008.
Elizabeth, Elizabeth, this is how you destroy your credibility. The rest of what you say has some merit, but this part shows that you either have no clue, or you are willing to say anything. As long as we have a federal government deficit, breacing the debt ceiling is a predictable event that is far from catastrophic. The Congress always lifts the debt ceiling. Congress would be fools not to.
With the foreign trade deficit we are running, what would be catastrophic would be to refuse to raise the debt ceiling. The federal budget deficit is how we put the money back into the domestic economy that is drained away by our foreign trade deficit. On average, our federal budget deficit needs to be at least as big as our trade deficit if we want to avoid an economic contraction.
I then noticed that in her essay, she had a link to the expert who she quoted. In her essay they link was at the word “say” as I reproduced above. Here is that that link led to Failure to raise debt ceiling would be ‘more catastrophic’ than Lehman collapse, S&P says.
Failure to raise the debt ceiling could have worse consequences than the collapse of Lehman Brothers during the financial crisis, S&P economist Beth Ann Bovino said.
Lapses like this are exactly what make me think that Elizabeth Warren doesn’t know much about economics. She may know banking and bankruptcy, but not enough economics to be any better President than Barack Obama was.