would be a decline in the value of bonds and increase in interest rates. former cnbc guy, there s a trade there. if you think the government s not going to be able to pay its bills you can get short the bond market, speculate it s going down and long rising interest rates. somebody who wanted to do that could say, look at politics sand i m short at the bond market these guys are crazy. what struck me at interesting. one thing to watch cnbc or an average person that watches and go to their charles schwab account and make a political dysfunction. it s something else entirely when one of the people in the room, in this case eric cantor, is actually short the u.s. bond market at a time when he has a say on whether america defaults. i mean, listen, mike milken and the boys got busted for insider trading back in the day, but how can you be a serving politician way short position, a bet
why are some republicans picking this as the fight and not that, which is really the place to have this discussion? i ve said to it you before. democrats have shown no willingness to cut at any point in time. it s like you have to put them in this emergency to make decisions. in the end, this is barely worth a debate because it is going to be raised. it is that clear to everyone what the problems r. here s the perfect metaphor. in braveheart, the two battles look at each other like they re about to shed all kinds of blood. and the young soldier says, what s going to happen? h older guy says, the noble wills negotiate and we ll go home. that s going to happen here. we ve been talking about if america defaults, you would see higher interest rates charged to the u.s. government. that s true. what we don t know but what we can predict with high probability is you could plunge the world into a new financial it may not happen but there s some chance that it could
you i the money because the risk of you not paying them back goes up. megyn: what is the government supposed to do in response to a warning like this? it s not news to us that we have a debt problem. it s a warning to politicians, get a grip on the debt or else. megyn: do they pay attention to this? what they re paying attention to is this debt ceiling debate. megyn: yeah. as i said, we run out of money in april megyn: and we have to raise the amount we allow ourselves to be in debt or not. if we don t raise it, we default on our loans. megyn: you don t think that s a good idea. i think it s a terrible idea. many heg meg ohs have said we ve got to constrict. we should just find ways to cut spending. if you just cut it off right there and then, america defaults, and we have the shame of default for a generation megyn: is it really shameful? this is the united states of america. megyn: i know. i m just saying a lot of people declare bankruptcy, they say, i m sorry, i ra