Wall Street Braces for US Debt Default and Mortgage/Stock Market Collapse: Report

Wall Street Braces for US Debt Default and Mortgage/Stock Market Collapse: Report


Wall Street executives are preparing for the worst as the US debt ceiling deadline looms, with big bond investors stressing the importance of liquidity to remain durable amid potential market volatility, according to Reuters.

Wall Street executives are reportedly preparing for the worst in regard to the looming United States debt ceiling deadline.

Citigroup chief executive Jane Fraser reveals the ongoing partisan debate is “more worrying” than arguments over previous debt ceiling deadlines, reports by Reuters.

United States Treasury Secretary Janet Yellen has warned that the United States will tumble into an “economic calamity” if Congress fails to raise the debt ceiling. She likewise projected that the Government could run out of cash by June 1st if the  challenge isn’t dealt with.

Reuters reports that big bond investors are stressing the importance of liquidity to remain durable amid potential market volatility.

READ NOW
Bitcoins Billion-Dollar Blunder: The Dump Disaster

The Securities Industry and Financial Markets Association (SIFMA), a trade group for broker-dealers, financing banks and investment managers, is reportedly gaming out numerous routes the Government can potentially choose to go down in the event it runs out of cash, including one where the Treasury Department extends maturing securities by one day at a time.

Reuters reports would be “the most disruptive scenario” would be if the Treasury doesn’t offer extensions and fails to pay bonds.

Reveals Rob Toomey, SIFMA’s managing director and associate general counsel for financial resources markets,

“It is difficult because this is unprecedented but all we’re attempting to do is make sure we develop a strategy with our members to assist them navigate through what would be a disruptive situation.”

Negotiations betwixt House Republicans and the Biden Administration continued on Tuesday, though it remains unclear how close the opposing sides are to reaching a deal.

READ NOW
Gaming Crypto Goes Boom: $80M Ecosystem Fund Sparks 90% Surge!

Generated Image: Midjourney

Source

Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.




Follow us

Latest Crypto News

Share via
Share via
Send this to a friend