Originally posted by Bob Gray
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The debt ceiling is not a product of the credit card company in this situation, it's the holder of the card himself. This is Joe Blow saying "Even though I racked up $X in bills, I personally pledged to myself I'd only pay off $Y. Should I change Y to be greater than X or go into default and really screw myself over?"
The debt ceiling is the U.S. government saying we've spent X, but we're only allowing ourselves to pay back Y amount.
The credit card company in this analogy are the bond markets. If we were actually near our credit limit, the interest rates on our t-bills and bonds wouldbe skyrocketing. That hasn't happened, which means we're not actually anywhere near our credit limit.
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