***Questions for all the Economics Pundits and Gurus:
If USA defaults Like Greece, Spain and other Countries of Europe!
What ripples will it cause in the World’s Financial Markets?
can anyone tell us…I do not have a Clue..
will it affect the Guy or Gal on Main Street?
and how will Wall Street behave other than a Dive?***
Re: What will Happen if the Invisible :) "Debt Ceiling" is not Raised?
"Obama", ask the Republicans. You seem to be following Obama like Ben Bernanke. ;)
Ask Michelle Bachmann. Nothing will happen.
Re: What will Happen if the Invisible :) "Debt Ceiling" is not Raised?
My gues is Debt Ceiling will be raised!
Borrowing will never stop!
and neither will Inflation!
Markets will go up in the long run!
Re: What will Happen if the Invisible :) "Debt Ceiling" is not Raised?
"**Questions for all the Economics **"
On the one hand, you may have huge ripple effects
On the other hand, there may be no ripple effects
Re: What will Happen if the Invisible :) "Debt Ceiling" is not Raised?
"**Questions for all the Economics **"
On the one hand, you may have huge ripple effects On the other hand, there may be no ripple effects
You sure have answered it like true economist... :)
Re: What will Happen if the Invisible :) "Debt Ceiling" is not Raised?
OK - jokes aside, here is a non-expert's view of what may happen.
If the US defaults, bond yields would rise with 10-year treasury yields rising to ~ 5%(from the current 3.1% level) and staying there for a week or so.
The stock market would have a knee jerk reaction and probably sell off by say 15-20%. That should drop the market P/E to say 11-13, which is cheap by any measure.
So both in bonds and in stocks, things could get cheaper - so for long term investor, this could present an opporunity.
This is not a recommendation for anyone to jump in - each of us have to do our own homework and look at our own risk tolerance. This is just my view of what might happen in the extremely unlikely event of a US default on its debt.
My crystal ball wants the rest of the day off.