How Much Could the Stock Market Drop?

By on July 28, 2011

Credit Suisse’s Andrew Garthwaite predicts that in the very unlikely event the U. S. defaults on its debt, the stock market could drop 30%, while GDP would contract by more than 5 percent.

Garthwaite said there is a 50% chance of a ratings downgrade for U. S. debt, but this would not lead to much of a reaction citing Japan’s AA- rating and 1.1 percent yields.

Read More: CNBC

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