America's Debt Crisis: A Looming Catastrophe?

The Debt Dilemma

In this financial discussion, America's debts have turned into a war of words, especially with Moody's recent downgrade that indeed shows the present situation is that bad. There are no longer any rating agencies that consider American debt to be crystal clean. The downsides have started debates on the nation's economy. As bonds of the U.S. government and the dollar realizable get weaker, investors are more and more careful, which results in a lower market.

Massive Sell-Offs and Market Anxiety

The slogan "Sell America" has re-emerged as Wall Street is confronted with forewarnings about the U.S. debt. The financial markets are cod annoying the chaos, selling off sig all with big amounts. Such a reaction only proves that investors are quite shaky as the economy is not very stable at this point.

Political Stalemate and Economic Implications

Regardless of the seriousness of the matter, there is no average political agreement when it comes to the problem of the national debt. The GOP's big spending bill talks are sapped by worries over a softening Treasury bond market and the creditworthiness downgrade. This political inertia worsens the economic effects, as borrowing rates are poised to surge involved in all things from mortgages to auto loans.