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
Local

MTA announces service changes for Sunday

The MTA has announced service changes ahead of Sunday's People's Climate March, which will be held from 11:30 a.m. to 4:30 p.m. Sunday. Riders using…

Local

NYPD launches Twitter account for L train

The NYPD recently launched a Twitter handle dedicated to the L train and its riders. According to @NYPDLtrain, officers went underground Thursday morning to hand…

Local

Bushwick community space offers activists a place to…

A new Bushwick community space offers community activists to meet, create, learn and throw back a few cold ones. MayDay, located 214 Starr Street in Bushwick,…

Local

Activists gearing up for Sunday's "historic" People's Climate…

If all goes according to plan, more than 100,000 people will gather near Central Park West on Sunday morning and march through midtown to raise…

Movies

Review: Terry Gilliam's 'The Zero Theorem' is better…

Terry Gilliam's latest, "The Zero Theorem," concerns a reclusive malcontent (Christoph Waltz) struggling with the search for the meaning of life.

Music

Esperanza Spalding and a being called Emily get…

Esperanza Spalding is about to spiral off in a brand new direction that may or may include an alter ego named Emily.

Movies

Review: Bickering family dramedy 'This is Where I…

A talented cast sits Shiva in the bickering family dramedy "This is Where I Leave You," although it's more sap than yuks.

Movies

Review: Desert-walking movie 'Tracks' would be better as…

Mia Wasikowska walks 1700 miles across Australia's deserts in "Tracks," in a story that defies triumph-of-the-spirit cliches but gets some of them anyway.

NFL

J.J. Watt poses unique challenges to struggling Giants…

Watt, arguably the best defensive player in the league, is the leader of a surprising Texans (2-0) team that has already matched last season’s win total.

NFL

Eric Decker 'unlikely to play' against Bears: Source

Jets wide receiver Eric Decker's status for Monday night’s game against the Bears is in doubt after he missed practice again Wednesday.

NFL

Preston Parker, not Odell Beckham, will replace Jerrel…

Tom Coughlin noted the next man up will be unheralded veteran Preston Parker.

NFL

NFL Week 3 full schedule (kickoff time, TV)

NFL Week 3 full schedule (kickoff time, TV)

Parenting

A sneaky way to serve kids fruits and…

"My First Juices and Smoothies" gives smoothie recipes for kids.

Style

3 things we love from Day 1 of…

The highlights from Day 1 of Milan Fashion Week.

Sex

Why don't more couples use condoms?

  Call it the “condom moment.” That’s the name the authors of a new study have given to the pivotal conversation every couple should be…

Sex

Need an idea for a first date? Here's…

Picture your idea of a nice first date. Is it dinner and a movie? A visit to an interesting museum exhibit? Instead, an expert on…