Monday, May 16, 2011

US hits credit limit, setting up 11-week fight

US hits debt limit; Treasury juggles books while Congress fights over whether to raise ceiling

Paul Wiseman, AP Economics Writer, On Monday May 16, 2011, 6:15 pm EDT

WASHINGTON (AP) -- The government has maxed out its credit card.

The United States reached its $14.3 trillion limit on federal borrowing Monday, leaving Congress 11 weeks to raise the threshold or risk a financial panic or another recession.

Treasury Secretary Timothy Geithner formally notified Congress that the government would halt its investments in two federal pension plans so it won't exceed the borrowing limit.

Geithner said the government could get by with bookkeeping maneuvers like that through Aug. 2. After that, the government could default on its debt for the first time, threatening....

Complete story:
http://finance.yahoo.com/news/US-hits-credit-limit-setting-apf-611732106.html?x=0&sec=topStories&pos=3&asset=&ccode=

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