A U.S. default would spike interest rates, crash bond markets, trigger a credit freeze, and destroy consumer confidence. Mortgages would become unaffordable. Mass foreclosures and job losses would crush demand. Asset fire sales would follow. Housing prices would collapse.

This would also reshuffle assets, so speculators and highly leveraged people would be punished instead of being rewarded.

It will also cleanup the situation for future generations so kids won't have to be under extreme debt to pay back in some way to government, because the older people lived above their means.