Be afraid, be very afraid. Or not***
Congressional dysfunction may give investors a couple of scares this Halloween season.
First up, congress must raise the debt ceiling before or on November 3rd. If it does not the Treasury says it is tapped out and cannot borrow any more money. This would result in at least a technical default on outstanding treasury debt, including US Treasury bills and bonds, the former being widely accepted as the safest investment in the world. Also potentially undermined would be US financial stability and the credibility of the US dollar, the world’s leading reserve currency.
