Business Insider: The White House has warned stocks will plunge 45% and a deep recession will strike in the 3rd quarter if the US defaults
* The stock market could crash 45% if the US defaults on its debt, the White House warned.
* The debt ceiling deadline is quickly approaching in early June as the US Treasury exhausts all of its extraordinary measures.
* President Joe Biden and House Speaker Kevin McCarthy are scheduled to meet about the debt ceiling later today.
A US debt default could spark a 45% crash in the stock market and generate a deep recession akin to the 2008 Great Financial Crisis, the White House’s Council of Economic Advisers warned earlier this month.
The deadline for lawmakers to lift the debt limit is rapidly approaching in early June as Treasury Secretary Janet Yellen exhausts all of the department’s extraordinary measures.
If a debt ceiling deal isn’t reached, it could mean the Treasury forgoes Social Security payments, payments to Medicare and Medicaid, and ultimately payments to US bond holders. A potential debt default in mid-June has led to a surge in the US 1-month Treasury yield to 5.56% from its low of 3.31% last month.
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WNU Editor: A lot of fear-mongering happening right now.