Does the Debt Ceiling Make Deficits Worse?

As the debt ceiling debate marches on, politicians are under more and more heat from bond investors and rating agencies to reach a deal that would avoid both a crippling default and a credit downgrade. The legal debt limit driving the deal has forced a conversation Washington has long managed to avoid, which, all in all, seems like a …

Could a Debt Deal Lead to a Credit Crisis?

The biggest fear in Washington right now is that a standoff over the debt ceiling might lead to a swift U.S. default. But a growing chorus of economists and investors say they’re less worried about what happens on August 2 than what comes after. After all, politicians are bound to reach a compromise on the debt ceiling at some point, …

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