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What happens if a debt ceiling agreement isn't reached by August 2?




New York Stock Exchange on May 25, 2010. What will the monitors show if the government defaults on its debt?
New York Stock Exchange on May 25, 2010. What will the monitors show if the government defaults on its debt?
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The Senate returns to work today on a plan to reduce the national debt. The Treasury Department has said that parts of the government will shut down if a deal is not reached by August 2. The prognosis is confusing- will a financial crisis ensue, or can lawmakers find subtle ways to keep the economy in order even if the government defaults? Allan Sloan, senior editor at large for Fortune Magazine tells us what exactly might happen if a debt reduction plan isn't passed in time.