More recently, JP Morgan's managing director outlined the consequences in a letter to the Treasury Department. Among the impacts projected were the following:

A rise in Treasury's long-term funding costs;
A contraction of credit;
A reduction in the purchase of Treasuries by foreign investors on a permanent basis or even sell off exiting holdings;
A downgrading of the U.S. sovereign credit rating;
A possible run on money market funds;
The destruction of market confidence.