Wednesday, 9 October 2013

The Financial Apocalypse Is Due Next Week

Now I don’t want to worry you unduly, but apparently the United States is running out of money.
To cut a long story short, American politicians can’t agree on their country’s spending and whether they should increase the level of their so-called debt ceiling…
…so the US Treasury may become unable to borrow any more cash and then have to default on its debts.
Default Day is in fact set for Thursday 17th October. Circle the date in your diary, just in case, as the market might be in for a rough time between now and then.
To give you a flavour of what could be in store, here is an extract from a recent Bloomberg article:
“Failure by the world’s largest borrower to pay its debt – unprecedented in modern history – will devastate stock markets… blow up borrowing costs for billions of people and companies, ravage the dollar and throw the US and world economies into a recession that probably would become a depression.”
Apparently the US debt is 23 times the liabilities owed by Lehman Brothers when the investment bank went under during 2008. (The Motley Fool UK)

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