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Debt Ceiling Crisis

All articles tagged with #debt ceiling crisis

politicseconomy2 years ago•6 min saved

"Four Possible Outcomes of the Debt-Ceiling Crisis"

The US government could run out of funds to pay its bills as soon as June 1st, and although Democrats and Republicans remain far apart on the issue, a potential agreement to raise the debt ceiling and cut spending is starting to take shape. The most likely outcome is that a debt-ceiling agreement is reached just prior to the default deadline, with some modest negative economic effects. However, there is a significant degree of uncertainty, and the debt-ceiling stand-off could play out in several scenarios, including Congress kicking the can down the road, the US briefly entering default, or the debt crisis being resolved well ahead of the deadline.

via Economist Intelligence Unit|

#compromise #debt-ceiling-crisis #economic-impact

economics2 years ago•4 min saved

The Impending US Debt Default and Its Consequences.

The US government is facing a debt-ceiling crisis, with Republicans demanding big spending cuts and Democrats resisting. The Biden administration has three options to manage the fallout: minting a trillion-dollar coin, deploying the 14th Amendment of the Constitution, or offering bonds with high coupons. However, these solutions are ruses and loopholes that could be subject to legal challenge, leaving prioritisation of payments as the fallback option. This would involve setting aside cash from tax revenues to make interest payments, resulting in a cut of one-quarter in non-interest expenditures and a harsh dose of austerity.

via The Economist|

#biden-administration #debt-ceiling-crisis #economics

business2 years ago•4 min saved

US Small Businesses and Jobs at Risk as Debt Ceiling Standoff Continues.

Small businesses are bracing for a potential "catastrophic" scenario as lawmakers in Washington show few signs of making progress toward a deal to raise the nation's debt ceiling. A default would most likely lead to a significant pullback in bank lending, preventing some companies from covering short-term costs and forcing them to put longer-term expansion plans on hold. Small businesses would be hit the hardest by a default, and they would be likely to feel the effects even before it occurred because of tightened lending from banks. Despite the catastrophic consequences, the larger business community has been relatively quiet when it comes to urging Congress to reach a deal.

via NBC News|

#business #congress #debt-ceiling-crisis

finance2 years ago•3 min saved

Debt default deadline sends markets into turmoil.

The US debt-ceiling crisis is expected to weigh on markets over the next few weeks, with Treasury Secretary Janet Yellen warning that the US could default on its debt as soon as June 1. The lack of urgency means that debt-ceiling fears don't usually impact stocks until the projected default day is within two weeks, according to Bank of America. However, the pressure is likely still coming, with some analysts comparing the current political conditions to 2011, when a debt-ceiling crisis led to a nosedive in the S&P 500. Investors are advised to buy short-dated Treasury bills with the expectation that the crisis will be resolved.

via Yahoo Finance|

#debt-ceiling-crisis #finance #market-volatility

finance2 years ago•1 min saved

Jim Cramer's Expert Insights on Navigating the Stock Market's Hurdles.

Jim Cramer believes that the debt ceiling crisis will cause mayhem in the market, but as long as it is resolved, it won't destroy it. He recommends waiting to buy until after tomorrow's labor report hurdle is cleared, and then taking profits before steeling oneself for the debt ceiling fiasco. If concerns about the debt ceiling are cleared, it could potentially reopen the IPO window and usher in good deals.

via CNBC|

#debt-ceiling-crisis #finance #jim-cramer

finance2 years ago•1 min saved

Navigating the Four Hurdles of the Stock Market: Insights from Jim Cramer and JPMorgan Traders.

Jim Cramer has identified four main hurdles that investors need to navigate right now, including the upcoming Fed meeting, employment numbers, the debt ceiling crisis, and Apple's earnings report. While these issues would be easier to handle if stocks were lower, Cramer believes that anyone who can effectively navigate these hurdles will see a payoff.

via CNBC|

#apple-earnings #debt-ceiling-crisis #fed-meeting