The Impending Risk of a US Debt Default: What You Need to Know.

As the U.S. approaches its debt limit, investors, executives, and economists are preparing for the possibility of a default, which could have catastrophic effects on the $24 trillion U.S. Treasury market and the global economy. A missed payment could trigger a trading frenzy, causing stocks, corporate debt, and the value of the dollar to plummet. Ratings downgrades could lead to a cascade of downgrades for government-linked issuers, and the financial system's plumbing could freeze up, making trading more costly and difficult. A default could also permanently diminish the nation's global financial reputation and result in half a million lost jobs and a shallow recession, with a protracted default leading to eight million lost jobs and a severe recession.