Monitoring spiritual deception and world events from a Biblical perspective.
Wednesday, October 16, 2013
As U.S. faces potential downgrade, markets flash alarm over
Stock and bond markets — as well as the system of daily borrowing that helps banks operate and companies make payroll — are flashing increasing concern about whether Congress will find agreement to raise the federal debt ceiling, suggesting that investors may not give lawmakers much more time to haggle before markets swoon.
“Political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default,” analysts at Fitch wrote Tuesday. “The U.S. risks being forced to incur widespread delays of payments to suppliers and employees, as well as Social Security payments to citizens — all of which would damage the perception of U.S. sovereign creditworthiness and the economy.”