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The Straight Truth

By Jennifer Beeston @ Guaranteed Rate Mortgage

By Jennifer Beeston | Mortgage Broker
or Lender in California

The debt ceiling:let's get political!

On August 2nd the United States may default on their debt.  August 2nd is the drop dead date for the debt ceiling to be raised.  If the debt ceiling is not raised the United States will lose its triple A credit rating and will basically stop paying their bills. This will affect every American as interest rates on everything from mortgages to credit cards will increase due to our countries lower credit rating.  If it happens it will harpoon any chance of recovery we are heading towards.   Also,this also could effect the paychecks of our soldiers and social security.  Nice right?

Basic Analogy:  The United States is a debt heavy person who lives off of credit.  They pay all their bills with credit because their income goes straight to paying the interest on the credit.  Currently, they have maxed out their credit and unless everyone agrees they get more credit the US is maxed out.  They will not be able to pay their bills since they need credit to pay them and the interest rates on any credit they have will go up because they are now higher risk. 

Currently, the Congress, Senate, president etc  are "working" on a resolution.  However, just a few days away and they cannot come to agreement.  A few days away.  The country is unsettled, the markets are unsettled.  I am unsettled.  If they cannot come to agreement our country could be thrown into a historical moment that will never looked back upon warmly. 

!Bottom Line:  I am hoping they come to an agreement and I have to say I will be surprised if they do not.  But for the sake of our country can they knock off all the drama?  Do we really have to wait till the last minute on everything?  I understand it is used to negotiate by increasing the stakes but haven't we as a Country already been through enough? 

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