Johns Hopkins Expert: Debt Ceiling Could Lead to Mayhem for U.S. Economy

With the United States hitting its debt ceiling today, the federal government must scramble to resolve the issue or the U.S. economy could be headed toward mayhem, according to Johns Hopkins University financial expert Kathleen Day, who has extensively studied debt and financial crises.

“To remain the benchmark of financial security globally, the United States government must take the proper measures to ensure it meet its finanical obligations,” said Day. “If the government defaults on its debt, retirement checks for veterans and social security recipients would be interrupted. The cost to borrow for homes, cars, and credit cards would explode. In short, default would cause mayhem.”

Day is a full-time lecturer at Johns Hopkins Carey Business School and an author.