Hey Jay, Stop Lying About the Consequences of Default

Seconds ago, WH spokesboy Jay Carney said that “every American family with a mortgage” will be affected by a US government credit default. He added that every family with a car payment, a student loan and a credit card payment will also be affected. He didn’t say “may,” he said “will.” And he just re-iterated that argument in response to a reporter’s question.

Only one of those is true.

Your home mortgage interest rate will only rise due to US default — which is the president’s card to play, by the way — if you’re paying on a floating interest rate mortgage. Ditto for your car payment and student loan. If you’re paying on a fixed rate loan, your interest rate will be unaffected. Credit card interest rates do tend to float, so there is a possibility that a US default could impact those. Carney said one true thing in the midst of a cloud of lies.

Once again, the White House is stoking fear and exploiting the situation to gain an advantage. After the Clinton years I never thought I’d say this, but we’re dealing with the most fundamentally dishonest administration in our lifetimes (so far).