Debt crisis could cause stock-market disaster: Goldman's Solomon, others

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There'll be a stock-market disaster if the US debt crisis isn't resolved soon, Goldman Sachs' David Solomon and other top execs warn

if US lawmakers don't vote to lift the debt ceiling soon, some of the biggest names on Wall Street warned Tuesday.open letter

"We write to emphasize the potentially disastrous consequences of a failure by the federal government to meet its obligations," the execs said."Absent a resolution, the government is likely toThe debt ceiling is a limit on how much the government can borrow, set by Congress. Republicans are refusing to vote to lift the borrowing limit unless the White House agrees to future spending cuts, which Biden and Senate believe should be voted on separately.

The last time the government came so close to a default was in 2011 – and that led to stock markets plunging around the world, the signatories of Tuesday's letter pointed out.

 

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