Democrats Play Russian Roulette With U.S. Economy
Biden’s refusal to negotiate endangers us all.
The United States facing a default on its debt could result in severe consequences for the country’s economy, with the fragile housing market being among the many areas that could be adversely affected.
The U.S. could easily default if President Biden doesn’t come to his senses and Democrats in Congress appear to not be too concerned.
According to Fox, Zillow has released a new analysis indicating that the failure of Congress to raise the debt limit by June 1 could lead to an alarming 22% surge in home-buying costs. Additionally, the report by Zillow senior economist Jeff Tucker suggests that the 30-year mortgage rate could skyrocket beyond 8%, the highest level seen since the early 2000s.
Zillow’s analysis painted a dire picture for the housing market in the event of a first-ever debt default. According to Jeff Tucker’s projections, there could be a 23% reduction in sales of existing homes, resulting in a seasonally adjusted annualized rate of 3.3 million by September. Moreover, by the end of 2024, home values could decrease by approximately 5%.
With time running out, lawmakers must act swiftly to raise the debt limit. In May, Treasury Secretary Janet Yellen cautioned that the country could exhaust its funds as early as June 1 if the debt ceiling is not raised, highlighting the urgency of the situation.
The release of Zillow’s analysis comes amidst a prolonged deadlock over the debt limit. The Republican-controlled House has passed a bill that increases the borrowing limit while also calling for budget cuts. Conversely, President Biden and the Democratic-controlled Senate have maintained that a “clean” debt ceiling bill is necessary, with any spending cuts to be negotiated separately.
Last week, President Biden held a meeting at the White House with House Speaker Kevin McCarthy, R-Calif., and other congressional leaders to discuss the nation’s spending and debt. However, the meeting ended without a consensus being reached. Despite this, the president expressed a more optimistic sentiment on Sunday, stating his belief that a deal could still be reached.
