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Takeaway: The bond market doesn't believe a single word from Treasury.

By Keith McCullough

President Obama and Treasury Secretary Jack Lew are completely misrepresenting the default risk for political gain. It's shameful.

McCullough: Shame on Lew - lewo

In case you somehow missed it, the Treasury Department grabbed headlines today warning the U.S. economy could fall into its deepest crisis since the Great Depression if Congress doesn't raise the debt ceiling. 

"A default would be unprecedented and has the potential to be catastrophic," Treasury said. "The negative spillovers could reverberate around the world, and there might be a financial crisis and recession that could echo the events of 2008 or worse."

Really? Lew should be ashamed for spewing this fear-mongering nonsense.  

As for the Bond Market...It doesn't believe a single word from these guys on default risk. Otherwise yields would be ripping.

Check out the chart below.

McCullough: Shame on Lew - drake1

Keith McCullough is the Founder & CEO of Hedgeye Risk Management.