Debt Ceiling Crisis: How a Default Could Unfold

The United States is inching closer to calamity, as lawmakers continue to spar over what it will take to raise the country’s $31.4 trillion debt limit.

That has raised questions about what will happen if the United States does not raise its borrowing cap in time to avoid defaulting on its debt, along with how key players are preparing for that scenario and what would actually happen should the Treasury Department fail to repay its lenders.

Such a situation would be unprecedented, so it’s difficult to say with certainty how it would play out. But it’s not the first time investors […]

Click here to visit source. www.nytimes.com