Aside from providing some analysis about the consequences of default, and the likely prospects for increases in employment in the near future, the following story illustrates the close relationship - some say too close - between executive officials and private enterprise.
Until recently, Peter Orszag was the head of Obama's Office of Management and Budget - the White House's top adviser on budgetary matters - a position comparable to the Congressional Budget Office. Now he holds a high position at Citigroup, and is able to provide inside information about likely government activities. Nothing he is doing is that different from previous officials from various administrations.
From the Atlantic:
Former OMB director Peter Orszag left the Obama administration last year for Citigroup. But his opinions about what's going on in Washington are highly sought after by Citigroup clients. Part of his job is to advise institutional clients like hedge funds and mutual funds, which are growing nervous about the looming possibility of a debt default, like everybody else. Orszag recently gave such a briefing that left at least some in his audience convinced that the situation is less dire than Treasury is indicating.
FYI: Ezra Klein explains why default is bad for the economy. It will increase the amount of money that the federal government pays in interest on the money it borrows, which will in turn increase everyone else's interests as well. This will suppress spending.
