• What will happen if US Defaults On Oct 17th?

    Hot topic from past one month on US news Headlines is - US Debt Default. Let us see much talked 'Default' and Oct 17th deadline, consequences of US Default on Debts.

    What is Default on Debt?

    'Default' is nothing but inability to pay monthly bills and interests on debt. As like many other countries US also owes money to other countries in the world. US owes 3 + trillion dollars to just to China, Japan etc. US pays it's debt monthly minimum payment and interest on debt as we pay for Credit card. On Oct 17th US will run out of money to pay the monthly bills which will call it as 'Default'.

    If US can't raise it's current debt limit, country will default at any time on or after Oct 17th. Both US parties Republicans and Democrats are careless and irresponsible. Republicans want to crush 'Obamacare' in return of approving bill to raise the debt limit to avoid default where as Democrats don't want to give up on 'Obamacare'.

    Consequences of US Default

    1) Stock Markets Crash

    if the U.S. fails to make an interest payment on its debt, stock markets around the world will immediately crash. Some fear a quick drop of 1,000 points in the Dow Jones Industrial Average.

    2) Immediate Global Recession

    Global Growth comes to halt. you will see Recession again like in 2008. Recession caused by US Default is not easily reversible.

    3) People run for money in Banks

    People try with withdraw all the money from saving/checkings accounts. Banks will run out of money immediately.

    4) Banks Collapse

    Top Banks like JP Morgan Chase will fail.

    5) Tough to get Loans

    It will very tough even to get credit card with $500 credit limit. We dry out options for Car loans, personal, education loans.
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