Bove: China, Japan Could Refuse to Roll Over Debt

A debt ceiling deal appears to be in the works, and the consensus is clear that no one actually expects a default. As Warren Buffett put it a few weeks ago, politicians may go "to the point of extreme idiocy," but most people think it's just brinkmanship. Even if the immediate crisis is averted, the damage may already be done. “The dominant belief in the financial markets is that a political tornado has hit Washington. It will cause some destruction but it will pass leaving all basic structures untouched… I do not agree,” writes Richard X Bove, VP of equity research at Rafferty Capital Markets LLC. Bove thinks the current crisis is the symbolic turning point in...