Report: Stocks Will Fall 30 Percent If Government Defaults

Stocks could fall as much as 30 percent and the economy could contract as much as 5 percent over the next six to 12 months if the government defaults, according to a report from Credit Suisse. Like much of Wall Street, the bank remains confident that the government will avert that problem, setting the chances of default at less than 1 percent. But even if it avoids default without reaching a debt deal, markets could slide as much as 15 percent. If Congress doesn’t reach a deal within the next three to six months, the risk of another recession is “very significant,” the report says.