Tomorrow's a day that treasury secretary Janet Yellen expects the United States To hit the debt ceiling which means the Government would not be able to borrow More money to meet its obligations Without Extraordinary Measures but how Does this financial cliff impact Americans at home and Marie has a look Yeah so we're going to give you an idea Of how this all works the Federal Reserve will begin implementing a So-called Extraordinary Measures to stay Below the debt ceiling one of the first Steps is halting contributions to Certain government Pension funds and Redeeming bonds that are held in federal Employees retirement funds now the Treasury Department is required by law To eventually replace those Investments With interest after the crisis is Resolved but in the short term federal Employees and those Pension funds will See their retirement accounts take a bit Of a hit but even if these uh measures By maybe a few more months to work out a Deal there could be Financial Consequences as the debate drags on the 2011 debt limit debate cost tax pairs 1.3 billion dollars because of raised Borrowing costs for the treasury Department and it caused the US's first Ever credit downgrade Americans also saw An impact on their personal finances There you go yep there are counts uh
Their mortgage Auto and personal loan Interest rates all went up during the Crisis and it took months to recover Household wealth fell 2.4 trillion Dollars between the second and the third Quarter of 2011 because of stock market Declines caused by the uncertainty During this period and all of this Happened when There you go all of this happened when The U.S got close to just close to Reaching the debt limit if it actually Happened the U.S would not be able to Pay for all of the government programs Or make any payments to its creditors And that includes no social security and Medicare payments Federal and Military Employees wouldn't get paid and any Program that gets government money like The National Weather Service would be Without funding there would also be Major macro Economic Consequences as well Moody's Analytics estimates the GDP would drop By nearly four percent nearly 6 million Jobs would be lost and household wealth Would drop by 15 trillion dollars Because of the stock market Fallout Secretary Ellen predicts that X date When the U.S would exhaust emergency Measures could be in June giving Congress about five months to avert an Economic meltdown Vlad All right Anne-Marie always great to
Have you breaking it down for us thank You very much
