AlexaRealty411 on Friday October 11th, 2013
Hosts: Robert Gawel & Petra Byers of Alexa Realty
Script for today’s show:
Robbie: Well in less than 1 week the US government will run out of money to pay its bills and some experts say a failure to raise the debt ceiling would be disastrous to our recovering economy. Today were going to take a look at the debt ceiling and try to understand just what’s at stake …all this and more next on AlexaRealty411.
Robbie: Hello and welcome to AlexaRealty 411, I’m Robert Gawel…
Petra: and I’m Petra Byers…So, if we are going to talk about understanding the debt ceiling, first of all lets’ start with…. what is the debt ceiling?
Robbie: The debt ceiling is the total amount of money the U.S. government can borrow to pay its bills and other obligations. In other words it’s our countries credit limit….and currently that limit is $16.7 trillion dollars.
Petra: Here’s and interesting fact, did you know that since 1960, congress has raised the debt ceiling 78 times.
Robbie: So, really when you think about this problem has been passed along for over 50 years.
Petra: So, why is October 17th such a critical date?
Robbie: Well according the Treasury Secretary Jacob Lew on Oct. 17, the US government would have about $30 billion on hand….this may sound like a lot of money but our government spends as much as $60 billion per day. Now I’m NO genius but who’s but this is not good math!
Petra: In the event the debt ceiling is not raised again, it’s most likely that the US will default on its obligations; retirees may not get their social security checks and programs like Medicare and Medicaid will suffer as well.
Robbie: The cost to borrow money would soar on things like mortgages, credit cards, car and student loans. According to economists the stock markets in the U.S. and around the world would almost certainly plunge and the economic recovery could stall. Here’s my question…Has the economy been in recovery? Or as a country…Have we just been living off a credit card and we’ve hit our limit again?
Petra: Just how much danger are we in…although the financial markets are not yet in panic mode, the standoff in Washington has economists worried. Unlike the debt ceiling dispute in the summer of 2011, the division over Obama-Care suggests there may be less room for compromise this time around.
Robbie: Here’s my opinion, you cannot continue to raise the debt ceiling over and over again. If we have to default on some of our obligations then just like many Americans who defaulted on their homes….we’ll have figure it out. But to continue to spend money we don’t have and to continue to dig a deeper and deeper hole for our kids should not be an option! But this is just my opinion…Let us know what you think, Leave your comments down below.
Petra: Well, we should have saved this show for Friday the 13th.
Robbie: These are very trying times in our country and the only way out is massive change…and the problem with real long lasting change is it hurts and most people are not willing to accept change.
Petra: If you’re looking to buy, sell or just have real estate questions call us were here to help.
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Robbie: If your home is underwater and in need of a short sale call us for a FREE No obligation consultation…remember for more great real estate related stories subscribe to our blog at alexarealty411.com and until next time thanks for watching I’m Robert Gawel
Petra: and I’m Petra Byers
Robbie: Well see you next week…bye for now