credit squeeze making it much 45rder to borrow. a default means interest rates for credit cards and student loans would spike as well and payments from the government would degree up. washington meets main street. we are outside a local benefits administration office near washington, d.c. could we be seeing woirld recipients show up at offices all across the country. roughly 58 million americans rely on those benefits, secretary treasury jack lew says if it isn t paid, there could be a problem paying them. reporter: the globe marketplace feeling the effects of the weakening dollar t. u.s. current debt limit sits just under $16.7 trillion. our systems were not designed to not pay our bills. reporter: despite cries of impending chaos, some say sounding the alarms is a bit sensational. i d rather have a managed catastrophe which i don t think
here in chicago, we ve seen the housing market really pick up here in the last year. and like many.places, that has been helped by low interest rates for people looking for loans. but all of that could change if the government defaults because interest rates on home loans could spike or even worse, we could see another credit squeeze making it much harder to borrow. a default also means interest rates for credit cards and student loans wos spike, as well as payments from the government would the dry up. washington meet main street. we re outside of a local social security benefits administration office here in washington, d.c. could we be seeing worried recipients of those benefits show up at offices all across the country? roughly 5 million americans rely on benefits but treasury secretary jack lew says if the debt ceiling isn t raised, it could be a problem paying them. reporter: the ripples of a default would be far reaching. the global mark place feeling the effects of the we
saturday. his son says he is doing well. good for him. thanks so much for watching. i m poppy harlow. around the world starts right around the world starts right now. captions by vitac www.vitac.com we are 60 hours away from something that hasn t happened before, when the uss reaches its borrowing limit and could default on its bills. now world leaders have a message for washington, raise the debt ceiling now. also this. interest rates on home loans could spike or even worse, we cos see another credit squeeze making it much harder to borrow. racing for default with thursday s deadline could mean for home buyers. investors and the global markets. welcome, everyone. welcome to around the world.
the u.s. is three days away from the debt ceiling deadline, the possibility of default sparking concern of potential economic turmoil around the world. if there was a problem lifting the debt ceiling it could well be that what is now recovery would turn into a recession or even worse. reporter: here at home a default could mean a serious hit to your investments like your 401(k). wall street now waiting on washington to dictate the trades as banks are predicting the s&p 500 could see painful losses as high as 45% if an agreement isn t reached. here in chicago we ve seen the housing market pick up in the last year and like many places, that has been helped by low interest rates for people looking for loans. but all of that could change if the government defaults, because interest rates on home loans could spike or even worse we could see another credit squeeze, making it much harder to borrow.
all the business news you need to know. i assigned you a time, and you must be here. it s scary, just like nik wallenda was, looking at the stock market. the dow, nasdaq, s&p each fell 2% after ben bernanke signaled an end to the fed s stimulus program. and this morning, china s main stock index plunging 5% today. lowest close there since 2009. worries in china, you guys, about a credit squeeze. so we re really watching china and its problems right now to see how that s going to reverberate for us. futures are lower. earlier today michaela said it s a two cup of coffee morning. starting tomorrow you re going to pay more for your starbucks latte. how much more? 1%. the price tag is going to affect brewed coffee, tea, latte, and espresso drinks. everything, except for maybe the cake pops. starbucks blames rising rent, labor, and material costs. you re going to pay more. and the desire to make profits. and money. and the wait is over.