Drama Time Coming! The US treasury is set to run out of cash to pay its bills in June.
If the Republicans and Democrats do not come to an agreement to raise the Debt Ceiling, the US government may shutdown once again.
In the worst case scenario (which I think is a low probability), the US government defaults on its debt, ratings get downgraded (which happened in 2011) and interest rates soar. This would be catastrophic for the US economy.
However, in most cases, this usually gets resolved at the last minute. This table shows how the S&P 500 reacted during previous government shutdowns.
www.piranhaprofits.com
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