And if the US can't come to agreement re. the debt ceiling this week?!

Citizen

Citizen

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Just wanting to get some perspectives on what the ramifications would be if the US can't come to an agreement about the debt ceiling by Thursday this week.

I take it that it would mean that the US would be in default regarding its debts, and is would obviously spark a loss of confidence in US credit-worthiness:rolleyes:, and thus shake the markets significantly.

Bt what are some of the other more specific repercussions of this looming probability? :o
 
US has lots of money (income) to pay interest on debts and plenty of discretionary spending that can be cut, they just don't want to (ala confessions of a shopaholic). The US will not default even if the debt limit passes.


Unless... unless they are trying to break things, which is a real possibility.

If they do default I would strongly suggest the next treasury auction will still be bought... such is the crazy world we live in

http://www.bloomberg.com/video/oct-...-default-rickards-Xfsk0wt2RRus~~zWXgok8g.html

8:10 the koolaid runs strong in this one
 
Such as the way the world is now, if the USA did default, the whole world would probably rush into the $US because it's the worlds biggest 'safe' haven.
Black is white, up is down, nothing makes any sense in financial markets.
 
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