The Debt Ceiling: Can a Crisis Be Avoided?

Many are predicting a financial disaster if the U.S. Congress fails to raise the debt ceiling by October 17. Given the political volatility around the issue and the current government shutdown, a catastrophic outcome cannot be ruled out. But a deep financial crisis is unlikely, because President Obama and the Treasury Department have many levers available to help them avoid worst-case scenarios, at least for the near term, says Wharton finance professor Franklin Allen in this podcast interview. Allen is co-editor of the recent book, Is U.S. Government Debt Different?