The US Is So Debt-Ridden It Might Default, Apparently
We all know the US isn’t the best with debt. But it looks like it might be about to get even worse, according to Bank of America’s CEO Brian Moynihan. Apparently, he’s getting ready for the possibility of a US debt default in case “it doesn’t get its house in order”.
If that does happen, here’s what’s gonna go (potentially) down:
Interest Rates Will Skyrocket
With a US debt default, interest rates would likely go through the roof. And if you’ve got any debt – from your credit card to that mortgage you still need to pay off – you better watch out. You might not be able to afford the repayments, so you’ll be in even more of a pickle than you already are!
Exports Could Take a Big Hit
Since exports to the US are all cheaper these days, any default would put a big, big dent in the foreign exchange reserves. At least, that’s the way it’s been looking since 2009.
The Stock Market Would Probably Suffer Too
Fact is, any US debt default would likely send the stock market into a scary tailspin. Investors would be fleeing from the country in an attempt to preserve their assets and the markets would be in freefall.
What Can We Do About It?
Well, for starters, it’s always wise to keep an eye on your own finances. Make sure you’re not taking on too much debt at any one time, and try to amass an emergency fund for times of financial crisis. That way, you’ll be able to weather whatever storm is heading our way.
Plus, it’s also worth getting in touch with your representatives and urging them to come to an agreement on our nation’s debt. If enough of us speak up, they might just listen.
The Bottom Line Is?
Yeah, it’s looking like we might have to prepare ourselves for a US debt default. It’s not going to be fun, and it’s also not going to be pretty. So doing whatever we can to avoid this disastrous possibility is the best way to go.
And If you still owe the Bank of America CEO some money, now might be a good time to pay up. After all, it’d be smart to stay in his good graces. Especially in case he “doesn’t get his house in order”!
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