US Government Faces Cash Crunch Deadline of June 8 or 9: Goldman Sachs

The US could default on its debt on June 8 or 9, about a week later than the June 1 "X-date" indicated by Treasury Secretary Janet Yellen, according to Goldman Sachs' chief political economist. The X-date is when the US can no longer pay its bills if the debt ceiling isn't raised. While the delay may buy the US more time to negotiate a deal over raising the debt ceiling, it's still better to do it sooner or later, said Goldman Sachs' Alec Phillips. The federal government relies on debt for its spending, and a default could have a domino effect on the domestic and global economy.