On May 16, 2011, the United States ran up against its $14.3 trillion debt ceiling. While May 17th may not have felt much different to you than the 16th, this event has the potential to wreak serious havoc on the country as a whole, the economy and even our way of life if the issue is not addressed. Sounds serious, doesn’t it? It is. However, many Americans do not understand the debt ceiling because fear-mongers on every side of the issue have spent so much time drumming up terrifying scenarios that much of the public, including a lot of real estate investors, has simply stopped listening.
In this article, we will explore exactly what the ramifications are right now for the United States in wake of exceeding its debt ceiling and what could happen in the event of various scenarios for dealing with the problem. Of course, we’ll investigate the impact of this event on real estate and other forms of investing in addition to examining the broader implications of this serious problem.