Former U.S. Treasury Secretary Lawrence Summers said the odds that the U.S. government could face a technical debt default due to legislation around its borrowing limit were at around 2%-3%, but that any default would be fixed quickly, Reuters reported. A standoff between Republicans and Democrats over raising the U.S. borrowing limit has started to impact money markets, with incoming tax receipts recently indicating that the deadline to raise the $31.4 trillion borrowing limit could be sooner than expected. "I think the odds on a technical default associated with the debt limit legislation over the next few months are 2% or 3%, and if it happens it will be repaired fairly quickly," Summers said at a Morningstar investment conference in Chicago. He said that the chances of a default due to insolvency were, instead, much lower. "I think the odds that we will default in the sense of insolvency, and over some interval people who hold bonds will not be able to get paid, are - assuming the absence of a major war - certainly under 2% over the next decade."
https://finance.yahoo.com/news/1-us-debt-ceiling-technical-150838631.ht…