IT’S NOT “NEEDLESS,” IT SERVES A DISTINCT POLITICAL PURPOSE: The Hill: Hatch accuses Treasury Sec. Lew of creating ‘needless panic’ on debt limit.

The Treasury Department released a report Thursday that warned that a debt default could lead to financial chaos and drive the nation into a recession worse than the one caused by the 2008 financial meltdown. And in an interview with CNBC Wednesday, President Obama said Wall Street “should be worried” about the debt limit fight. The president also met with the heads of major financial institutions earlier this week to discuss the shutdown and debt limit debates.

Hatch said he agreed that default is not an option but accused the president of being the one driving fear over a default, as opposed to congressional Republicans. GOP lawmakers are lining up a number of concessions in exchange for an increase to the borrowing limit, while Obama has said he would not negotiate over a boost to the borrowing cap, calling it too important to be used for haggling.

Perhaps the Administration actually expects an economic tumble and is trying to pre-establish blame. That would be consistent with their general approach.