Are investors finally nervous about the US debt ceiling?

[Social Media]

Negotiations to prevent the US government from running out of money are headed down to the wire.

The Treasury says Congress must agree to raise the debt ceiling by 1 June or the US will run out of cash to pay its bills, resulting in economic disaster.

Top congressional Republican Kevin McCarthy says his party and the Democrats remain "far apart".

One of the big credit ratings firms has said the impasse could prompt it to downgrade the country's rating.

So with just over a week left - including a holiday weekend - are investors finally getting nervous?

Mark Lindbloom, of California-based Western Asset, which has more than $400bn (£322bn) in assets under management, said concerns were "dominating some conversations" with clients.

 

"There is a lot of fear-mongering going on" by politicians and the media, he said. "That scares people so yes, people are asking about it."

[vandeventer]

Republicans will not budge, as the spending needs to be cut. But the Democrats don't want to stop the spending, this is sad for America as the debt ceiling my not be raised

[Seppius]

Should be holding at least some crypto IMHO

[Tug]

I think the republicans are going to tank the economy as a way to get at the democrats when in reality they are the ones responsible things are going to get really really expensive now investors see this……..it’s gonna hit the fan big time

[Jingthing]

Yes, there is concern as there should be.

[billd766]

5 hours ago, vandeventer said:

Republicans will not budge, as the spending needs to be cut. But the Democrats don't want to stop the spending, this is sad for America as the debt ceiling my not be raised

Reverse the tax cut for the rich that Trump and the GOP brought in