October 9th, 2013
07:30 AM ET

CEOs Say Default Would Be Disaster for Economy

The effects of the shutdown and potential default are now really starting to hit the financial markets.

With no solution in sight, small businesses are some of the first to feel the pinch of this shutdown. Now big businesses are speaking up, urging Congress to get it together.

“They’re certainly speaking very loudly and meeting with Republican leaders trying to get this message across that they lived through the financial crisis of 2008 and they do not want to see markets in disarray. They do not want to see consumer's panicking,” CNN Business Correspondent Christine Romans reports.

Familiar with the tell-tale signs of what could become another “great recession,” America’s top CEO’s say the message is clear.

Goldman Sachs Chairman and CEO Lloyd Blankfein says, "We're the most important economy in the world.  We're the reserve currency in the world.  Payments have to go out to people.  If money doesn't flow in, then money doesn't flow out."

Coca-Cola Chairman and CEO Muhtar Kent says, "The way forward is not easy. It requires a lot of sacrifice. It requires a lot of flexibility. It requires a lot of compromise. We expect the same will happen with the political architecture."

With stocks tumbling four of the last five days, the threat of default is now threatening your investments— 401-K, your mutual funds, your portfolio.

Berkshire Hathaway Chairman and CEO Warren Buffett believes the debt ceiling “doesn't really make sense” for this reason.

“It ought to be banned as a weapon,” Buffett says. “It should be like nuclear bombs. I mean basically, too horrible to use."

“The result of the government's inaction could be catastrophic,” Romans says. “While the world waits for a solution– your money hangs in the balance.”

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