The Looming Threat of a US Debt Default and Recession

The ongoing standoff over the US debt ceiling could potentially trigger a recession, but a default on the country's debt would be even worse, according to economists. The Treasury Department has warned that the US could run out of money to pay its bills as soon as October, and failure to raise the debt ceiling could lead to a government shutdown and a potential default on US debt. While a recession is a possibility if the debt ceiling isn't raised, economists say that a default would be catastrophic for the US economy and global financial markets.