Weather Alerts 1 View »

How much could the government shutdown impact the economy?


Video by

How much could the government shutdown impact the economy?

CREATED Oct 14, 2013

New York (KTNV) -- The New York Stock Exchange could be rocky the next few days on Wall Street.

Investors are nervously anticipating whether the nation's elected officials will allow the U.S. to default on its debts.

The two-week government shutdown has already cost the U.S. more than $100 million a day. But economists said not raising the debt ceiling by Thursday could lead to a recession.

After Thursday, the government would only have enough money to pay about two-thirds of its bill; $106 billion short of $328 billion in commitments.

The International Monetary Fund is warning of a global, financial catastrophe if the U.S. defaults.

A default could also have far-reaching consequences for the personal finances of Americans, retirement accounts could lose value and loans for big purchases like cars and homes could get more expensive and difficult to get.

Many analysts expect a deal to be reached before Thursday, but it's not certain.