US averts default/financial crisis, ends 16 day governement shutdown

Ateneo Professor on Entrepreneurship

From Reuters | October 17, 2013 4:24 pm EDT

                                          

USA averted a financial crisis, a possible debt default and downgrade as he hastily signed into a law a bill passed by both houses that will temporarily pass a budget and debt limit through the next 90 days (and then another impasse)  US Pres. Obama hinted a rebuke on the Republicans in the Congress for being responsible for the crisis.

However, the Republicans blamed Obama for not being in the fight as the crisis loomed;  he refused to negotiate with the Republicans.

In the class I discussed the dilemna:  what would you do with USA which has more than $16 trillion in debt;  China holds more than $ l trillion in trillions, and $ 2 trillion in other forms of assets invested in USA.  Some suggested to cut spending and deficit.  That is what Republicans are after in negotiations -  spending cuts.  Nowhere in the history of USA has debt and deficit ballooned than in the time of the present administration.

With the crisis, and the image of Republicans declining, they being blamed for the shutdown, they have to cave in and give up the fight.

What will happen next after February 7, 2014