3,882
edits
2023 United States debt-ceiling crisis: Difference between revisions
2023 United States debt-ceiling crisis (view source)
Revision as of 17:16, 25 May 2023
, 25 May 2023→Default Consequences
No edit summary |
|||
| Line 70: | Line 70: | ||
* Stock prices would be cut almost in one-third at the worst of the selloff, wiping out $12 trillion in household wealth. | * Stock prices would be cut almost in one-third at the worst of the selloff, wiping out $12 trillion in household wealth. | ||
* Treasury yields, mortgage rates, and other consumer and corporate borrowing rates would spike, at least until the debt limit is resolved and Treasury payments resume. Even then, rates would not fall back to where they were previously | * Treasury yields, mortgage rates, and other consumer and corporate borrowing rates would spike, at least until the debt limit is resolved and Treasury payments resume. Even then, rates would not fall back to where they were previously | ||
Their reasoining comes from these factors: | |||
* Loss of confidence in consumer, business, and investor confidence. Loss of confidence leads to decrease spending and investing, and credit growth from financial institutions | * Loss of confidence in consumer, business, and investor confidence. Loss of confidence leads to decrease spending and investing, and credit growth from financial institutions | ||