The U.S. Treasury is projected to run out of cash and default on U.S. obligations in mid-October. Before that happens, Congress will have to decide whether to raise the debt limit or default on the country's debt. Steven L. Schwarcz Stanley A. Star Professor of Law and Business, Duke Law School; founding director of Duke Global Financial Markets Center.schwarcz@law.duke.eduhttp://www.law.duke.edu/fac/schwarczSchwarcz, a leading expert in systemic risk, capital markets and asset securitization, is the author of numerous widely used texts and frequently cited articles on various aspects of law and finance. He has testified before Congress and has advised several U.S. and foreign governmental agencies on the financial crisis. His most recent article is "Rollover Risk: Ideating a U.S. Debt Default." Quote: "Although the U.S. government has technically defaulted on its debt in the past, such a default today would be much more devastating. Indeed, because almost half of U.S. debt is currently held by foreign investors, even the threat of a default could undermine the nation's creditworthiness."