Debt default would be 'catastrophic' event that could kill millions of American jobs, Moody's warns | CNN Business

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A breach of the US debt ceiling risks sparking a 2008-style economic catastrophe that wipes out millions of jobs and sets America back for generations, Moody’s Analytics warned

on Tuesday. In a new report ahead of Congressional testimony, Moody’s chief economist Mark Zandi described the standoff over raising the debt limit as an “immediate threat” to the nation’s economy that could negatively impact virtually all Americans. “A default would be a catastrophic blow to the already fragile economy,” Zandi said in prepared remarks to be delivered during a Senate subcommittee hearing on Tuesday.

The warning comes after Fitch Ratings told CNN on Monday that the US credit rating could get downgraded even if a default is avoided because repeated debt ceiling standoffs will raise debt about the US dollar and Treasuries. Citing concerns about America’s mountain of debt, Republicans have called for steep cuts to federal spending in exchange for raising the debt ceiling.

 

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The US debit is dangerously large. ShutItDown

It would be far worse than 2008

Magats either don’t believe it or just don’t care. They will crash the economy if it means hurting Biden.

Next round of lower interest rates and the money machine starts starts quantitative easing will usher in our own version of Venezuela economy. Fun times ahead, we ain't seen nothing yet.

So raise taxes on the rich, what’s so hard to understand.

Just what the republicans want.....to go back!!!!!

If were a corporation we'd have been declared insolvent years ago! You children, grandchildren etc are so screwed.

Nobody’s going to default on debt except well positioned Master’s degree holders who signed contracts to be responsible for their obligations. It’s a line by line review, not popular but called business. Gov has not one secretary with appropriate background, USA or CanadaCCPwoke

Attention CNN. Debt going to destroy the economy. It’s too late. Stop pretending this is a partisan issue, it’s not.

Uncle Sammy has screwed the pooch.

Make your mind up. What is it? Exceeding the debt limit or actually defaulting on repayment?

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