Lew: The Government Runs Out of Money in 3 Weeks
Jack Lew says we need a debt ceiling deal by Oct. 17
By Kevin Spak, Newser User
Posted Sep 25, 2013 11:19 AM CDT
Jack Lew, seen in this file photo, thinks investors are being a little too sanguine about the prospect of a debt ceiling deal.   (AP Photo/Kostas Tsironis, Pool)

(Newser) – Treasury Secretary Jack Lew today for the first time offered a debt ceiling deadline—and it's pretty soon. In a letter to John Boehner, Lew said the government will be unable to pay its bills unless Congress passes a debt limit bump by Oct. 17. On that day, the government will be down to its last $30 billion, which "would be far short of net expenditures." The date is essentially in line with what Congress expected, Politico reports.

Yesterday, Lew told a Bloomberg summit that investors seemed a little too confident that a deal would come. "People have to take seriously the fact that Congress has a lot of work to do." Some analysts are starting to do just that, Business Insider reports. One DC-based analyst today estimated that there is a 40% chance of a default—and he's basing the other 60% on "blind faith." On the bright side, Moody's yesterday said that hitting the ceiling probably wouldn't prompt a US credit rating downgrade, Reuters reports.

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Showing 3 of 58 comments
JohnRitz
Sep 30, 2013 9:30 PM CDT
If we keep raising the debt ceiling, when do we expect to pay it back? Why is congress hell bent on raising the debt ceiling? When a household has lots of debts, the first thing to do is to reduce spending, not increase it. Why is congress different? Congress is creating a debt bubble that will burst at some point in time. I just don't want to imagine what would happen to this country's economy.
Econ_101
Sep 28, 2013 9:33 AM CDT
Will the last person leaving the USA please turn off the lights !!! Thank you.
ThinkStraightAmerica
Sep 27, 2013 2:27 PM CDT
Let's fire the people who are currently mismanaging our money !