The Impending U.S. Default: A Recipe for Economic Disaster.
TL;DR Summary
A U.S. debt default would lead to a slump in stock and bond markets, while eroding the U.S.' financial standing in the world, analysts say. The impact would be severe, with the S&P 500 potentially falling by at least 20%. A default would also send the U.S bond markets sharply lower, weaken the U.S. dollar, and potentially trigger another global financial crisis. Credit ratings agencies would likely downgrade the country's credit rating. A default would also result in higher borrowing costs, affecting anyone hoping to buy a house or a car.
- Here's what could happen in markets if the U.S. defaults. Hint: It won't be pretty NPR
- Debt-Ceiling Standoff Could Start a Recession, but Default Would Be Worse The Wall Street Journal
- No Way Out: US Must Face its Debt Crisis Sooner than Later | Vantage with Palki Sharma Firstpost
- Debt ceiling debacle erodes US dollar’s attraction as world’s reserve currency South China Morning Post
- John W. Diamond: Banks, Fed preparing for U.S. default — and chaos to follow TribLIVE
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