Consequence of not raising Debt Limit

Moody’s warns US on consequences of not raising debt limit – Reuters

Moody’s warned Thursday it would consider cutting the United State’s coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the US debt limit.

A US default would roil global financial markets, but few investors are rattled just yet. Wall Street, in large part, expects the debt and deficit negotiations to go down to the wire, as did talks over tax cuts and the 2011 budget.