Goldman Sachs: Failure to raise debt ceiling will cause 9% drop in GDP...
"If the debt limit is not raised before the Treasury depletes its cash balance, it could force the Treasury to rapidly eliminate the budget deficit to stay under the debt ceiling," wrote Phillips and Dawsey in a note distributed to clients on Saturday night. "We estimate that the fiscal pullback would amount to 9% of GDP. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed quickly."
