American debt crisis.

[Leekbrookgull]

It seems talks are still on going between the Dems & Reps on how to slove the debt crisis in the USA,however should these talks fail and cause the US to default/delay repayment what does that mean for the £ and Euro based economies ?

 

[Beach Hut]

They won't default otherwise it will crash the whole worlds economies

 

[The Modfather]

They will reach an agreement to raise the debt ceiling or it could head towards a worldwide depression

 

[Don Quixote]

If they don't we're all DOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOMED!

 

[Leekbrookgull]

They won't default otherwise it will crash the whole worlds economies

True,but how long will it last before the next crisis ?

 

[Mohammed Al Fayed]

Probably no bearing on the Euro either way....on the basis its already screwed. From the English perspective, the threat of a sovereign debt failure is the biggest risk to the economic recovery although that threat comes from the peripheral Euro countries. Id eat my hat if the US defaulted.

 

[Jimbo.GRFC]

It seems talks are still on going between the Dems & Reps on how to slove the debt crisis in the USA,however should these talks fail and cause the US to default/delay repayment what does that mean for the £ and Euro based economies ?

Mark my words it will go to the wire and will be sorted this Tuesday 2nd August !!

 

[Jimbo.GRFC]

If they don't we're all DOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOMED!

Would that mean the Football League will only allow us 3 substitutes ?

 

[beorhthelm]

Probably no bearing on the Euro either way....on the basis its already screwed. From the English perspective, the threat of a sovereign debt failure is the biggest risk to the economic recovery although that threat comes from the peripheral Euro countries. Id eat my hat if the US defaulted.

the US defaulting *is* a sovereign debt failure, the largest possible. theres so many different scenarios, but if as a result of defaulting the credit rating is dropped, each and every bank and financial institution that hold US treasuries will potentially find themselves with a large hole in their funding. of course they could elect to over look each others shortfall, which is one way for to not be an all out crisis. but then there are the credit default swaps which will be triggered, which could do more damage if intitutions are overexposed to these.