Wall Street left idling as debt deal wheels spin

Senate Minority Leader Mitch McConnell remains firm on not raising any 
taxes. “That’s just not going to happen,” he said.

President Barack Obama’s Democrats and their Republican rivals were further apart than ever yesterday in an impasse over America’s debt limit as Wall Street braced for a looming U.S. default and credit downgrade.

One week before a deadline to act, the two sides pursued competing budget plans that appeared to have little chance of winning broad congressional approval. There was no compromise in sight to raise the nation’s $14.3 trillion debt ceiling by Aug. 2 to avert a default that could trigger global financial chaos.

With politicians in Washington starkly at odds, corporate America was growing increasingly nervous. Credit rating agencies have threatened to cut America’s top-notch AAA bond rating if an increase in the debt limit is not accompanied by a plan for controlling long-term deficits.

A default and downgrade could push the United States back into recession and send shock waves through global markets.

Wall Street banks are preparing for the real possibility that the United States will lose its top credit rating, which they say will cost the country $100 billion in additional interest payments and hurt both consumers and the economy.

“That’s a negative for growth,” Mike Hanson, senior U.S. economist at Bank of America Merrill Lynch, told reporters on a call organized by a Wall Street trade group, the Securities Industry and Financial Markets Association.



News
Entertainment
Sports
Lifestyle
National

Is #JusticeForAvaLynn a case of bullying?

On Saturday, the hashtag #JusticeForAvaLynn became one of the trending topics on Twitter. Users circulated the above photo of 5-year-old AvaLynn, posted by her mother…

International

Terrorism could spread to US and Europe in…

Saudi Arabia's King Abdullah said terrorism would soon spread to Europe and the United States unless it is quickly dealt with in the Middle East,…

National

Ex-Bitcoin official to plead guilty to Silk Road…

Bitcoin entrepreneur Charlie Shrem has reached a plea deal to resolve U.S. charges that he engaged in a scheme to sell over $1 million of…

International

China's army changes tactics to prepare for war…

Chinese President Xi Jinping has said China will spur military innovation and called on the army to create a new strategy for "information warfare" as…

Gossip

Joan Rivers on life support: Report

TMZ reports that comedian Joan Rivers has been placed on life support, "completely reliant on machines to stay alive." Rivers has been hospitalized since she…

Movies

What's new on Netflix in September

September has a supernatural theme for Netflix. UFO "documentaries" and the survivalist reality series "Doomsday Preppers" are among the new series coming to the online…

Going Out

'Friends' coffeehouse Central Perk coming to NYC —…

"Friends" is coming back for a one-off special: "The One with the Free Coffee." Warner Bros. is bringing a pop-up replica of Central Perk, the…

Movies

Interview: 'As Above, So Below' directors: 5 ways…

The fraternal directors of the found footage horror "As Above, So Below" dish on the best ways to frighten the bejesus out of audiences.

NFL

3 things we learned in the Giants preseason…

The final score didn’t matter — a 16-13 win by the Giants — but it would’ve been nice to finally see Big Blue’s new-look offense get on track.

NFL

NFL Power Rankings: Seahawks, Broncos, Patriots, 49ers start…

NFL Power Rankings: Seahawks, Broncos, Patriots start at top

U.S. Soccer

5 facts about new England captain Wayne Rooney

Manchester United striker Wayne Rooney was named as the new England captain by coach Roy Hodgson on Thursday.

NFL

Jets vs. Eagles: 3 things to watch

A win on Thursday night at the Eagles would give the Jets a 3-1 record and just their second winning preseason under head coach Rex Ryan.

Wellbeing

This Week in Health: Lesbians, men most likely…

Lesbians, men most likely to achieve orgasm Location: U.S. Study subjects: 2,850 people Results: Whether you find it shocking or not, a new study reports that…

Wellbeing

VIDEO: Still not wearing sunscreen? You will after…

Sunscreen is possibly the most often repeated - and ignored - piece of skincare advice. But Thomas Leveritt took a different tactic. With a short…

Food

Twitter used to track down sources of food…

When Chicago health officials saw Twitter users complaining about local food poisoning episodes, they reached out on Twitter to those users and often ended up…

Style

Trend: White hot on the 2014 Emmy's red…

White was one of the big trends on the Emmy's red carpet.