The financial markets paid little attention to remarks by President Obama on the debt ceiling debate this morning. Stocks and …
Government Default
As Default Looks More Likely, a Primer on Its Possible Consequences
A couple weeks ago, TIME Moneyland ran a piece about what could happen to regular Americans if the U.S. government defaults. At the time, most of us here thought an actual default was unlikely and that Congress and President Obama would find some solution to raise the debt ceiling. But with the Senate and the House still unable to reach …
Derivatives to the Rescue? How ‘Betting Against’ the U.S. Could Prevent A Default Crisis
Wednesday’s plunge in the markets signaled that the impasse over the debt ceiling, if it continues, will eventually trigger a substantial market sell-off. Until now, there had been surprising complacency among investors, who seemed to assume that after all the noise and haggling there would, of course, be a deal. That belief itself …
Why is Obama Opposed to a Short-Term Debt Deal? Politics
As the tortuous debt ceiling debate continues, with plot twists that even the most diehard political junkies are having a hard time keeping straight, one aspect continues to bedevil the process: the staunch refusal of both …
The U.S. Will Not Default on August 2
The only thing that matters for global markets over the coming days is whether a deal can be struck in Washington over the debt ceiling. That said, there is one major misconception – fostered by politicians – about what the …
Odd Couple Debt Dance In D.C. Spooks Markets
Can two major political parties get along without driving the financial markets crazy? Apparently not, as Democrats and Republicans – the odd couple of U.S. politics – still aren’t on the same page in agreeing to a new debt …
What Would a U.S. Government Default Feel Like For the Average American?
A compromise between the budget proposals being batted around by President Obama and House Speaker John Boehner will, hopefully, be reached before the federal government defaults on any debt.
But what if the August 2 deadline to …
