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Moody's economist: Not raising debt limit would be 'cataclysmic'

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An economist for Moody's sounded the alarm Tuesday that a government shutdown or a default on the country's debt would derail an already tepid recovery and perhaps ignite a new recession. Testifying before a Senate Budget Committee, Mark Zandi, chief economist for the credit rating agency and a former adviser to Sen. John McCain's presidential campaign, warned that political uncertainty in...

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