Debt default would hammer Texans with higher mortgage rates, sweeping job losses

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Debt default would hammer Texans with higher mortgage rates, sweeping job losses
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Economy-shaking default looms as the nation’s leaders race to strike a deal ahead of the fast-approaching deadline.

“It could be very bad. It could be, maybe, nothing. Maybe you have a bad week or a bad day,” former President Donald TrumpTrump reiterated that message Friday, writing on his social media site Truth Social thatBut that approach brings major risks, say the experts.

But many Texas Republicans put the onus on President Joe Biden to accept fiscal reforms in exchange for raising the cap. In a default, any federal spending, from military paychecks to Medicare reimbursements, could be delayed. All credit is tied to government rates, so as it becomes more expensive for the government to borrow, the same happens to everyone else whether it’s for a mortgage, a car loan or a credit card balance.

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