If there is no agreement in the debt dispute soon, the USA is threatened with insolvency – with unforeseeable consequences.
(Photo: AP)
Dusseldorf A team from the major US bank JP Morgan currently meets once a week in a so-called “war room”. The aim of the meeting: The major bank is preparing for one of the biggest and most difficult to calculate risks on the markets – a US default. This could happen if Democrats and Republicans don’t reach an agreement soon in the dispute over raising the debt ceiling.
This scenario, which JP Morgan boss Jamie Dimon calls “potentially catastrophic”, is still averted. US President Joe Biden will meet with Republican Kevin McCarthy on Tuesday. He is the head of the House of Representatives, which is blocking an increase in the debt limit.
Biden is optimistic about a compromise and says: “I think we’ll make it.” But mistrust and concern are growing on the financial market with every day that there is no sign of an agreement.
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