Fed: Default would be dangerous; Fitch may cut rating

The term "riskless" has once again taken on a whole new meaning, as it did in 2008.  So is the phrase, "what is money?"

http://www.reuters.com/article/2011/06/08/us-usa-ratings-fitch-idUSTRE7573IM20110608?feedType=RSS&feedName=topNews

St. Louis Federal Reserve Bank President James Bullard told Reuters on Wednesday "the U.S. fiscal situation, if not handled correctly, could turn into a global macro shock.

Bullard's warning came just after Fitch said it would slash to "junk" the ratings on all Treasury securities, seen worldwide as a risk-free investment, if the government misses debt payments by August 15.