![]() ![]() ![]() But this fear of market volatility isn’t going away.Ī similar fight around the debt ceiling in 2011 spurred a serious bout of market volatility. Investors don’t appear to be panicking just yet stocks rose modestly on Monday. Markets will get volatile, maybe the stock market will go down, the Treasury markets will have their own problems,” he said. “The closer you get to it, you will have panic. The United States government is inching closer to its so-called debt ceiling X-date, when the Treasury could run out of cash and extraordinary measures to pay all government obligations, and both political parties remain at odds with no concrete solution to avoid a default.Īnd while the odds of the US government actually defaulting on its debt still remain relatively low - it would likely trigger an economic disaster and both sides of the political aisle have a lot to lose - Wall Street is wary of what the ongoing debate means for equity markets.ĭefaulting on the US debt would be “potentially catastrophic,” JPMorgan CEO Jamie Dimon said last week. ![]()
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