The debt ceiling isn't raised? What are the scenarios?
What would happen if......
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an immediate 44% spending cut would be like a contagion. not to mention the effect on the rest of the world. ratings (even if there wasn't a downgrade interest rates would shoot up), confidence, etc. many investment portfolios are built upon the assumption that treasuries are rock-solid. some securities are measured with their spread (i.e. compared to treasuries). safe to say, the international economy would change overnight.
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