Obama allows for possibility of US default

WASHINGTON (AP) ? President Barack Obama for the first time is allowing for the possibility that the U.S. may default on its financial obligations.

At a hastily arranged White House appearance on Friday, Obama said: “If we default, then we’re going to have to make adjustments.”

Up until now, the president has always expressed confidence that the leadership in Congress would not fail to meet an Aug. 2 deadline to raise the nation’s debt ceiling, keeping the country from defaulting on its financial obligations.