Congressional failure to raise the federal debt ceiling by August
2 should not significantly immediately affect property/casualty insurers,
according to an article in Business Insurance that cites I.I.I. president Dr. Robert Hartwig.
The article notes:
“Failure to raise the nation’s debt ceiling is not synonymous with a sovereign default in which a government does not honor its debts. While a failure to raise the debt ceiling remains a possibility, the odds of a default are extremely remote, observers say.”
I.I.I. president Dr. Robert Hartwig tells Business Insurance that there is zero possibility the United States will default on its debt, and that the U.S. is not Greece.
Revenue flowing into the U.S. Treasury in August will greatly exceed what is needed to make interest payments on debt, he adds.
Dr. Hartwig’s comments come as the New York Times reports that rival separate debt plans to raise the debt ceiling are being assembled by Democrat and Republican leaders.
The dueling plans emerged after House speaker John Boehner walked away from negotiations with the White House Friday, the NYT says.