bonds. that s nothing compared to what will happen, which is the suspension of medicare and social security payments. the potential closing of government offices, and then a potential credit rating downgrade. that s the worst-case scenario. so all of these things are in play right now, with difficult choices affecting americans individually in households across the country. and we ve been through this 78 different times and always managed to raise the debt ceiling. right now, the standoff could be very costly to americans. thank you. we ll be right back. like the #20. the elite chicken and bacon ranch. built with rotisserie-style chicken and double cheese. i love what i m seeing here. that s some well-coached chicken. you done, peyton? the subway series just keeps gettin better. at t-mobile, your business will save over $1000 bucks. what are you going to do with it? i could use a new sign. woooo! alright. soundproof windows.
hill. even though there does appear to be some movement today on capitol hill, as you just heard from lauren, the danger of a default has not gone away. so what happens if the united states does default on its debt? first, it no longer would have enough money to pay all of its bills in full and on time, which means the government would likely have to delay payments or default on some of its commitments. to us regular folks that could mean things like delays in paying social security payments, veterans benefits and federal employees salaries. a default would also have a major impact on the u.s. economy and the global financial markets. it would also raise the cost to borrow, making it more difficult for businesses and even average americans to borrow money. even just the threat of a default that happened back in 2011 caused the only credit rating downgrade in our nation s history. treasury secretary janet yellen has said that she believes a so-called extraordinary measures
they uncover. a lot of questions about what went wrong. paula reid, thank you. most stocks did rally. the smoke has not cleared completely. moody s placed six u.s. banks on review for potential credit rating downgrade and slashed the outlook for the whole u.s. banking sector. let s bring in our cnn anchor christine romans. that is huge. what does it mean that moody s did this? does it indicate future bank collapses? i think the most important thing is things have really stabilized here. of we saw that yesterday. stability is back in the system. what moody s investors services is warning is we should be prepared for harder times ahead for the banks. you have a lot of deposits baboe the insurance line. you have people trying to move
federal employees salaries it. would impact pretty much everything. and there are no signs right now of a deal to do this. republicans say they want spending cuts. the white house says there will be no negotiations full stop. republican congressman andy biggs tweeted today, quote, we cannot raise the debt ceiling, democrats have carelessly spent our taxpayer money and devalued our currency. of course this would impact us all. and the white house fired back, in part, biggs is dead wrong to actively support the ruin of millions of american livelihoods, 401(k) plans and small businesses all in the name of scorched-earth partisanship. well, this is how we start. here s the thing. just the threat of a default back in 2011 led to the only credit rating downgrade in american history. it was a big deal and it was important. and it is something that we ve covered extensively back even when the show first launched more than 11 years ago.
credit rating downgrade in the history of our nation in 2011. increasing or suspending the debt limit does not authorize new spending commitments or cost taxpayers money. it is simply allowing the government to finance existing legal obligations that congresses and presidents of both parties have made in the past. the united states is the single biggest purchase group of goods and services in the entire world. the near threat of the world s largest pushes are of goods and services defaulting on its payment obligations carries global implications. and that is why every president, every congress since herbert hoover has lifted or suspended the debt ceiling when necessary. in 2011, when the united states came within days of actually