White House warns of a global financial crisis on debt default: Report

The potential for global recession could be worse than the 2008 GFC : Report

As Washington dickers over raising the debt limit, the White House is offering a sober take on the real-world impact of default.

If lawmakers fail to raise the federal debt limit before the government runs out of money to cover its bills, it could set off a global financial crisis that the United States would be powerless to confront, White House economists warn in a report released on Wednesday.

“A default would send shock waves through global financial markets and would likely cause credit markets worldwide to freeze up and stock markets to plunge,” officials at the White House Council of Economic