This transcript is automatically generated
Getting ready for a new debt auction on Monday the question is how can the treasury -- debt while our credit rating is at risk of a downgrade.
Charlie compared to break it down for get a credit downgrade.
If you take the President Obama and and secretary.
Treasury Secretary Geithner at the word were at risk for default.
If you're gonna default Tuesday have repeated that since a couple of days -- yes.
If you're gonna default Tuesday.
How can you issue bonds Monday 51 billion dollars worth of bonds are gonna be issued by the Treasury Department they say does not violate the debt cap.
11 reason why is because they are rolling over -- -- -- you do get to replace old that they're not exactly.
Increasing the debt -- replacing it it doesn't matter they still got to be sold to somebody.
And what's really if you're seeing here is that the treasury will not comment.
On how you can sell 51 billion dollars of bonds.
When we're on the verge of default just authority hesitating at -- I Geithner who would buy our debt if you're gonna if you're gonna quote Monday's going to be -- today there is good it would I mean I don't I think this is one of the more under covered stories.
Out there today because we do have to issue debt on Monday or at least a planning if they.
Let's see if they pull back the auction but see if they cancel its with the demand is like but -- is a huge day and out a if the American people have to pay more money.
For this -- for this for the fifth to sell these bonds.
There's only what -- -- -- is that just too deeply humbling.
-- the president complained Treasury Secretary Geithner for going out there and raising the Specter of default.
When as we've been reporting on this and this network we were the first reported.
The chances of default in this is slim because they have enough money to pay the bondholders right we -- not gonna default on debt.
Almost a somehow wanna pay defense contract -- how long out of Charlie for how long do we have enough money to pay a long time.
An element welcome it HEICO it wasn't it does depend to what they cut we don't have to default on our debt.
Obviously you wanna get a budget you wanna you wanna raise the debt ceiling at some point and you want to deal with the the bigger issues.
We we have an economy to grow and you know we want to -- debt forever but here's the thing Monday's.
If they do this auction let's see if investors runaway to see if they do is only two people to blame.
You here's a stack -- a -- that the Democrats former were representative from Pennsylvania saying that He remembered that first TARP vote.
And He said we watch the market dropped 600 point amid a minute and then added another 177.
On top of that it was you remember she said got to get a deal done but He said He wouldn't vote for the better plan right now is hoping that tonight there may be some other.
Compromises hammered out I think the I think that they're two different situations to I remember the financial crisis there was a complete lockdown in the credit markets.
You don't have this -- we don't have every bank -- -- -- that's true that's very true Charlie thank you very much.