In the following video, Motley Fool analysts Morgan Housel and Matt Koppenheffer discuss some potential ramifications of the fiscal cliff. Since a significant portion of the U.S. national debt is owned by big banks, they stand to lose a lot of money if the fiscal cliff causes interest rates to rise, a scenario that many think may occur. Morgan, however, points to some recent U.S. history that may suggest that quite the opposite is possible.
If we go over the cliff, how hard will it hit the banks?
About the Author
Morgan Housel is the best-selling author of The Psychology of Money and Same as Ever. A former economics and finance columnist for Fool.com and analyst for Motley Fool One, he currently serves as a partner at The Collaborative Fund and on the board of directors at Markel.