DTN News - US FINANCIAL CRISIS: US Government Shutdown 2013 (Video)
Source: DTN News - - This article compiled by K. V. Seth from reliable sources Reuters(NSI News Source Info) TORONTO, Canada - October 9, 2013: The White House signalled on Monday that it would be open to a short-term hike in the U.S. debt limit as the United States moved a step closer to its first-ever default while a separate impasse, a partial government shutdown, entered its second week.
The shutdown, which centres on a fight over funding for President Barack Obama’s new health care law, has pushed hundreds of thousands of workers off the job, closed national parks and museums and stopped an array of government services.
A default could have far bigger consequences. Economists say it could trigger a financial crisis and recession that would echo 2008 — or worse. The 2008 financial crisis plunged the country into the worst recession since the Great Depression of the 1930s.
President Barack Obama makes a statement about the government shutdown during a visit to FEMA headquarters. The president thanked workers at the FEMA for doing their jobs under "less than optimal circumstances".zoom
Gene Sperling, a senior Obama economic adviser, reiterated a vow not to negotiate on the debt because it would sanction the threat of default as a bargaining chip and increase the chance of default in the future.
A defiant John Boehner, the Republican leader of the House of Representatives, has insisted that Obama must negotiate on changes to his health care law and spending cuts if he wants to end the shutdown and avert a default.
The uncompromising talk rattled financial markets early Monday as stocks slumped. China, which holds $1.277 trillion in U.S. Treasury bonds and stands as the United States’ biggest foreign creditor, urged that all efforts are made to avoid a default.
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