Gov. Scott: U.S. Default Impact Would Be Minimal

MIAMI (CBSMiami.com) – Governor Rick Scott has weighed in with his thoughts on the federal debt ceiling. Scott is in favor of letting the U.S. default instead of raising the debt ceiling.

“The impact would be minimal,” Scott told CBS4 news partner the Miami Herald.

Scott’s dismissal of the potential default of the U.S. government is because he feels that it would have little to any impact on state government or the financial markets.

However, Moody’s has already threatened at least five states with a credit rating drop if the federal government goes into default. Florida isn’t one of those states, but a federal default could bring mass chaos to Wall Street and the bond markets.

The last time bond markets were severely rattled was after Lehman Brothers collapsed in 2008. That event, along with others, is part of what sparked the Great Recession and the jobless recovery.

But Scott isn’t fazed by the warnings coming from Wall Street and the Treasury Department.

“I don’t think anybody knows, because it’s never happened,” Scott told the Herald. “I believe the markets understand where the federal government is. They understand where the spending is, so I think the market has already priced it (default) in.”

Scott said if he were in charge he would not raise the debt ceiling and instead restructure the government to determine how money is being spent.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Miami Herald contributed to this report.)

Comments

One Comment

  1. Paul Dwyer says:

    What an Idiot~~~~Rick scott should consider that if the US goverment fails to pay it’d debts~~then why should Joe Average pay his or her debts< So forget my credit card obligations~dont worry about the car payments~Morgage payment~~~well is that important? wont change the markets if i dont pay…
    What a irresposible thing to say " Nobody knows what will happen cos we never ben there" what a genius~~~lets shoot in the dark and see what we hit!

    1. vickie says:

      I live in Florida and YES Scott is a IDIOT ! He has ruined our State…….people who voted for him are now sorry they did so. We haven’t had a raise in almost 6 years, then he now makes us pay 3 % of our salary into our pension, so yes he is a IDIOT. He wants everything to run as a business…….he is all for big business, forget the little people.

  2. Jerry Moorehead says:

    Rick Scott is an Idiot!

  3. Charles Woodward says:

    I agree. He is an idiot. His remarks are irrisponsible. Just typical of the man, opens his mouth before engaging the brain

  4. Joshua says:

    I totally agree that Rick Scot is an IDIOT! What kind of country would we be if we didn’t pay our bills? Declared bankruptcy? We need to get our spending in check and raise our debt limit to continue operations.

  5. CellTherapy says:

    “The impact would be minimal,” Because it would have little to any impact on
    his wallet. More Tea Anyone? I bet you Vote next time!

  6. DuckTheFemocrats says:

    Rick Scott is right on target!! Moody’s is the same company that gave AAA rating to all the Mortgage Backed Securities that got us here in the first place. All the other rating agencies will not reduce the rating anyways. So why is it so important that Moody’s lowers the rating? IT IS NOT IMPORTANT!!! It is more important that we lower we lower the debt instead of trying to increase the debt

    This is one is for you liberals democrats and Obama lovers!!

    1. bobbyb says:

      Well if it happens I hope all your money is in a 401k. I wonder if you will complain about less coverage and higher fees for Medicare and cutbacks on Social Security? Maybe you will get some help from the multimillionaires or from big oil.

  7. Rick Herrin says:

    Mr. Braman I have a new project you might be interested in! Can we please recall this whack job?

  8. TaxedEnoughAlready says:

    I trust Rick Scott more than I trust the socialist and communist agenda of a Harvard lawyer and two year Senator from Chicago that was born in Hawaii and raised in Indonesia!! Yes that is Obama and he voted plenty of times when he was a Senator against raising the debt ceiling. So, what gives now you Liberals?

    I am TEA’d (TAXED ENOUGH ALREADY) up already with this socialist Obama trying to go after the taxes of the people who create jobs in the US.

    1. bobbyb says:

      Do you think he really wants to raise it? He knows that he has to do something as a last ditch effort because these guys want to protect all the rich people. Do you think that big business owners will just shut down if they are taxed. They are not hiring now an runs things on a skeleton crew to make more money. If people have less money they don’t spend money in business. Therefore business don’t grow. If they cut back medicare and Social Security then people can’t survive — they don’t spend – businesses don’t grow -m people don’t get hired.

    2. bobbyb says:

      You are taxed enough — geezz- who do you think is going pay for this crisis if it isn’t the very very wealthy —the top 2% of Americans ( do your research) or Big Oil. Is there anyone her that wants to defend Big Oil? … sorry about the typos – I am upset

      1. Barbie says:

        Slam dunkin like Shaquille O’Neal, if he wrote informative artceils.

  9. bobbyb says:

    For Rick Scott the genius- – – -Reuters) – Some of the largest pension funds and investment firms have urged President Barack Obama and Congress to resolve the deficit impasse and avoid inflicting “pain and hardship” on the nation.

    In an open letter to Obama and lawmakers dated July 25, top officials from ten pension funds and plan sponsors urged an increase in the debt ceiling, but more so of the need to reduce the massive federal budget deficit and avoid a potential downgrade of the U.S. by credit agencies.

    Investment firms BlackRock Inc. and Legg Mason signed a similar letter July 25 as part of a coalition of 14 large public and private investors.

    “The idea of America losing its AAA rating was once unthinkable, but now highly likely if our leaders fail to act,” the letters said. “The consequences of such a downgrade are very real and very serious.”

    “Our country faces threats to its economic well-being that will inflict pain and hardship on all our citizens for many years if we fail to act — and act now.”

  10. Scott is an idiot. He and the legislature should stick to what they do best, taking away peoples civil rights. Nothing gets the base excited like anti-gay , anti- planned parenthood, religious license plates, school vouchers, drug screening , anti abortion bills, anti-voting , cutting unemployemnt benefits, cutting taxs for the rich, anti high speed rail and anti anti anti anything else I may have left out. See job creation anywhere?

  11. James Hanes says:

    I see the State Employees’ unions have weighed in on this: “We haven’t had a raise in almost 6 years, then he now makes us pay 3 % of our salary into our pension, so yes he is a IDIOT. He wants everything to run as a business…His remarks are irrisponsible (sic)”
    Learn some grammar. Learn to spell and think for yourselves instead of thoughtlessly spewing your union talking points.

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