Default Day Looms Large
“For months, Wall Street has barely focused on the possibility that the government might default on its debt. It’s paying attention now.
As the drop-dead date to raise the nation’s $31.4 trillion debt ceiling looms with no deal in sight, traders and executives are starting to get nervous that President Joe Biden and Republicans won’t resolve the impasse until it’s too late. That’s sparked increasing concern about a potential threat that could rock markets and tilt the world’s largest economy into recession.”
The national default is a real possibility in the next few months and so begins a delicate dance to sell the competing plans to the American public. The GOP now has a wing that thinks a national default would be good and really no big deal in the great scheme of things. The GOP party establishment has different thoughts on the matter and will be pushing for a deal with the White House to avoid the calamity a default would cause. The White House has little choice but to negotiate some sort of settlement with the aim of avoiding public blame in the event of a government shutdown.
