Fears have arisen that the entire world may crash into a long depression due to the present economic problems in the United States. International Business Times reported on Oct. 3, 2013, "Treasury Default Could Crash US, Global Economy." Richard Bove of Rafferty of Capital Markets LLC, has warned that a default by the U.S. government would collapse the entire global economy, which would plunge the world into a depression so severe it could last decades.
Bove, who is one of the most influential bank analysts in the United States, has said, "God spare us from the fools who lead us.” Bove wrote in a note to clients about prospects that Congress may not raise the debt ceiling on Oct. 17, therefore forcing the nation to default on its sovereign debt. The present U.S. Treasury debt, which is nominally at $16.74 trillion, does not include $7.6 trillion in debt and guarantees of government sponsored enterprises such as Fannie Mae and Freddie Mac.
Reuters has reported, "Republicans hang tough in standoff over U.S. government shutdown." On Friday House Republicans held their ground firmly in a standoff with President Barack Obama over the U.S. government shutdown. Republicans have accused Obama of intransigence and not caring about the impact of the crisis on the American people. House of Representatives Speaker John Boehner has commented, "This isn't some damn game." It sure isn't a game as people across the United States begin to feel the infectious pain of the U.S. government shutdown.