It’s no joke. The sky over the investment world and everything under it, including bonds, stocks, money markets, commodities, you name it, will fall unless lawmakers raise the $14.3 trillion Federal debt ceiling by Aug. 2.Yeah, well, how's that working out?
It could be nothing less than catastrophic and worse than the financial meltdown of the late 2000s should Uncle Sam fail to raise the legal limit on government borrowing and default on U.S. debt, according to Greg McBride, a CFA charterholder and senior analyst with BankRate.com. “There will be no safe haven,” said McBride, from his perch in Florida.
And the sad part is that most Americans (and lawmakers for that matter) don’t realize just how bad things will get if the U.S. fails to pay any of its obligations, even if it’s the teeniest, tiniest bill.
Stocks eased off their session lows but were still sharply lower across the board in another volatile session Thursday as fears over a global economic slowdown intensified and ahead of the widely-followed monthly unemployment report.So glad we gave Obama another $2.4 trillion to waste.
The Dow Jones Industrial Average plunged over 2 percent, led by Caterpillar and Alcoa, after rebounding from a deep selloff in the previous session to snap an eight-day losing streak. The blue-chip index tumbled 372 points at its session low and is down for the 9th day in 10.
The S&P 500 and Nasdaq also plummeted. The S&P entered its "correction territory," defined by a drop of 10 percent from its peak from its intraday high in May. Both the S&P and Nasdaq are currently trading in negative territory for the year.