Jeezy
DP Veteran
- Joined
- May 21, 2011
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that has the potential to cause a significantly bad wall street reaction.
it might impress parts of the Republican base, but those same parts are going to be angry even if there's a compromise at the last possible moment.
they probably have until about July 20th to extend the ceiling with minimal consequences. it should have been done already.
A bad reaction? In all probability. A significantly bad reaction? No.
Most likely scenario is that Moody's lowers the bond rating and the markets whine for a bit. There will be no default and, in the long term, not raising the debt ceiling will inspire more confidence in American commercial paper.