Quote:
Originally Posted by mookiemookie
I'm not sure you fully understand what would happen economically if it were not raised. You would revive the credit crisis of 2008. And you'd make it seem mild in comparison. Treasury yields would skyrocket because of the flood of investors, foreign and domestic, dumping their holdings. In a misguided attempt at austerity, you'd end up bankrupting the country with sky high interest rates. Those higher rates would freeze all borrowing by not only the government, but by business and industry. You'd crash the economy.
Money market funds would break the buck - you'd destroy every pension fund, public fund, retirement fund and investor in the country. You think your city/state/municipality has trouble now? If their cash holdings were wiped out, you'd see trouble for real. Good luck keeping a police force or firefighters when you have no money to pay them.
God help us if the people in charge of things have the same lack of economic understanding as those opposed to raising the debt ceiling do.
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The Gop knows they must raise the debt ceiling and they will, but they will posture and threaten for political purposes. Obama didn't creat this mess, he inherited it from both parties. Fact is he can do little about it, congress is mostly responsible. Bush with help from both parties started the mad debt. I think both parties lost a time to correct it, everything they do is still politics and special interest. If the GOP were in control, they would've done the same thing Obama did.